Winding It Down
On November 9th the IMC blog bought the May 2016 soybean/wheat spread at $3.62 1/2. This trade was based on a high-probability seasonal pattern than projected higher prices through early January.
The time window for this seasonal trade comes to a close on Friday. If the spread had a price pattern with strong momentum, we might continue to ride it and trail a stop. But there isn’t such a pattern. Therefore, we are going to go ahead and liquidate on Friday.
On the long May 2016 soybean/wheat spread entered at $3.62 1/2, exit the position at the market-on-close on January 8th.