Although I haven't run the numbers, the discount to Kansas City and Minneapolis might be worth looking into, the market may be telling us something about Hard Red Winter and Durum.
From Agrimoney:
Wheat is more valuable than copper – at least as an investment opportunity, Societe Generale gurus have said, even as prices of the metal jumped to a record high.The bank's global asset allocation team introduced as its key commodity call a trade of taking a long position in wheat futures and short position in copper futures, ditching a recommendation to stay long in gold.The suggestion came even as copper hit a record $9,988.25 a tonne in London, spurred by expectations that global economic recovery will further boost demand for the metal.Goldman Sachs analysts have rated copper as the metal with the "greatest upside" potential, thanks to weak inventories, robust demand delivery driven by emerging market urbanisation, and a constrained supply outlook".However, Societe Generale questioned whether supplies were as tight as some investors appear to believe, with exchange warehouse stocks up by some 10% since late November.Prices in Shanghai and London markets continued to fail to present arbitrage opportunities, "suggesting there is no tightness in the Chinese copper market at present", the bank said."Copper within commodities appears to us particularly vulnerable to a correction as [prices] are back to pre-crisis levels."'Keen to stockpile'Wheat, meanwhile, was "likely to trade higher near-term" as investors factored in a "significant" tightening in supplies....MORE
