2011-04-21st (Thurs)

In the previous trading session I had the following positions;
Long 10 contracts Copper May 2011 with ACB of 422.23
Short 10 contracts Wheat May 2011 with ACB of 800.00

Sell 10 contracts Wheat May 2011 at 787.63 (2011-04-21, 01:43 am EST)
Buy 10 contracts Copper May 2011 at 433.88 (2011-04-21, 01:48 am EST)

Currently I have the following positions;
Long 20 contracts Copper May 2011 with ACB of 428.06
Short 20 contracts Wheat May 2011 with ACB of 793.82

Copper May 2011 closed at 438.13 (2011-04-21, 23:33 pm EST) and expires 04/28th (Thurs).
Copper July 2011 closed at 439.43.
If this insignificant positive-roll-yield persists I will let it automatically roll-forward on 04/29th to avoid slippage.

Wheat May 2011 closed at 793.50 (2011-04-21, 23:34 pm EST) and expires 04/28th (Thurs).
Wheat July 2011 closed at 832.40.
I am considering manual offsetting or even closing my Short at a Loss to avoid negative-roll-yield.

I wonder if I should Long Wheat just to get positive-roll-yield if the wide contango persists?
Theory has it that the two prices should converge which means Spot will go up and my Short will loose money.

Tomorrow is Good Friday April 22nd and most of the global markets will be closed.
European markets are also closed on Monday April 25th.

In the next three days I will need to make a decison on my Short Wheat position, for it will be stupid to loose money on such a textbook maneuver.

Stay Tuned,

Jeff
(2011-04-21, 23:55 pm EST)