# When Not to Make a Trade

> Analyst Elaine Kub notes HRW wheat cash bids look underpriced against CBOT futures while HRS futures on MGEX look overpriced versus the benchmark. She argues the unusual spreads reflect fundamentals, so arbitrage trades need caution. KC futures and CBOT futures were both trading near $3.90 a bushel.

- Date: 2016-12-07 · published 2016-12-07T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/73530-when-not-to-make-a-trade
- Commodities: [Wheat (HRW)](https://feedsoft.ai/c/KWHEAT.md), [Wheat (SRW)](https://feedsoft.ai/c/WHEAT.md)

## Why it matters

Wide and persistent spreads between HRW, SRW and HRS reflect real supply and quality differences, so buyers should price wheat classes on fundamentals rather than assume convergence.

## Read by commodity

- WHEAT: neutral
- KWHEAT: neutral

## Sources

- dtnpf.com: https://www.dtnpf.com/agriculture/web/ag/news/article/2016/12/07/make-trade

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.