Cocoa/Sugar Spread: Roll To the May Contracts

Cocoa/Sugar Spread

The blog entered a hypothetical short position in the March cocoa/sugar spread at +$11,947.20 (premium cocoa) on October 3rd. Since we’re short…and the cocoa/sugar combo is sweet…let’s make this commentary short and sweet as well: The liquidity has shifted over to the May contracts, so we’re inclined to roll to the May contracts.

May Cocoa Sugar spread daily

May Cocoa Sugar spread daily

Trade Strategy:

For tracking purposes, the blog will roll the March cocoa/sugar spread to the May cocoa/sugar spread at the market-on-close on Wednesday, February 11th. Risk the May spread to a two-consecutive day close above +$15,872.

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