Keep an eye on this extraordinary extreme in the soy crush spread. This spread includes 3 futures: soybeans, soybean oil and soybean meal and to be exactly now it is time to sell this spread!
What do you need to do to sell this spread?
To sell this spread you have to make 3 transactions:
You can see different numbers in front of the contracts like "2.2*ZM1!+11*ZL1!-ZS1!" because of the different multipliers in the futures contracts.
Of course, you also make this trade with CFDs, in this particular case you need to have positions sizes with a similar nominal value
What do you need to do to sell this spread?
To sell this spread you have to make 3 transactions:
- BUY 1 soybeans contract
- SELL 1 soybean oil contract
- SELL 1 soybean meal contract
You can see different numbers in front of the contracts like "2.2*ZM1!+11*ZL1!-ZS1!" because of the different multipliers in the futures contracts.
Of course, you also make this trade with CFDs, in this particular case you need to have positions sizes with a similar nominal value
Comment:
As you can see in the current chart, the trade idea was quite good so far. We expect to see this spread even more falling. Our first take profit is around 150.
Comment:
This spread is tightening more than expected. We have closed the trade around 125.