Ted Seifried, Chief Market Strategist VP Agricultural Hedge Division Zaner Group, specializes in agricultural hedging employing various strategies using futures, futures spreads, outright options and option combinations. He believes it is paramount to be able to use different strategies to adapt to market conditions. Ted works with large to mid size grain and livestock producers and end users in North, Central and South America. He can be reached at email@example.com.
TRADING COMMODITY FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT BE SUITABLE FOR ALL INVESTORS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES, KNOWLEDGE AND FINANCIAL RESOURCES.
Spreading historically has been a way to reduce risk in trading, but when it comes to old crop/new crop spreads, you must remember that the fundamentals apply differently and there is more volatility than in your basic calendar spread.