Position Updates

By | July 3, 2015

It’s been a busy few weeks in commodities with an increase in volatility leading to some good opportunities. Headed in to the long weekend, we saw a bit of covering, however I’m reasonably happy with the bulk of my positions. I’m just going to summarize some of my longer time frame trades.

Soybeans

We saw the USDA report out this week that was generally bullish for soybeans. I’m long the spread and unfortunately we didn’t quite get that same level of follow through. On Thursday we then got a reasonably disappointing export sales number which caused some weakness in the spreads. Holding for now with my bullish position.

Sugar

There’s a lot of Sugar around and price has reflected that over the last few months. However this week has been a good one for Sugar. Again I’m bullish the spread here and we’ve started to find some buying. Thursday was quite literally up and down based on some big buying then some late weakness and a weaker real. Happy to stick with this one.

Gasoline

There were mixed results from the EIA this week with a build in CL and a draw in RBOB – as a result we got a really big pop on Thursday. I’m short the spread and this isn’t what I wanted to see. However I’ve only got on small size. I’m not overly confident here. Hopefully we are just seeing some covering headed in to the long weekend and we can pull back a touch next week.

Wheat

It’s been an interesting week in the grains to say the least. The USDA report was generally considered bullish for soy and corn, however not so much for wheat. As a result wheat got dragged higher only to reverse and give back all its gains. There had also been some concerns around the weather – namely too much raining hurting yield. With all the news, IV has been good so I’ve got some option plays on at the moment. I like this one but there is always some degree of risk holding into the weekend.

Crude Oil

Wednesday’s build has added some volatility to the equation and is good for my current position. I’m in some options here given the IV and I’m happy where we stand.