Apr

5

We might witness something very historical in a few days. There is a good possibility the nearby month of corn will trade at a higher price than the nearby month of wheat.

Rocky Humbert writes: 

Perhaps the futures market is awakening to the fact that a box of Corn Chex cereal is already more expensive than a box of Wheat Chex cereal.

More seriously, during the summer of 1996, the price of Chicago front corn exceeded the price of Chicago front wheat. This also briefly occurred in late 1983/1984 as well as June 1977 and June 1969. In 1969 and 1977, this unusual occurence foretold an important bottom in the grain markets. In 1983/84 and 1996, it foretold a top in corn.

So while it's unusual to see Chicago Corn over Chicago Wheat, it's not unprecedented. Also, as Jeff will attest Minneapolis & Kansas hard wheat is at a large premium to Chicago wheat and corn would need to rise another 25% to close in on that spread.


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