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#ZO_F Oats is out of control. The ZC/ZO spread is ($1.54) per bushel. Never been this wide in the history of grain trading. Not even close. "Trade of the year" is long #corn and short #oats. Maybe. pic.twitter.com/dWsr69oDIa— Dave Reiter (@TradesByDave) October 27, 2021
Is this true or false?
Dave provides productive commentary on the Internet. He's highly disciplined, but that doesn't mean my computer always agrees. It's also could be the reason why I don't get many responses. Has oats gone crazy relative to corn? Yes. The more oats rallies, the more it outperforms corn, thus, distorting the traditional oats to corn relative performance. It's so distorted that a reversion to the mean suggests significant relative gains for corn. That only happens if the OAT/CORN ratio heads lower towards the two green lines.
Oats vs Corn Since 1959
Does this mean corn is the play in the grains market?
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