Trading KC Hard Red Winter (HRW) Wheat Futures

Outright Trades and the "Carb Arb"

The KC Hard Red Winter (HRW) Wheat futures contract has seen a significant rise in open interest, traded volume and speculative participation in 2014, primarily due to one of the worse droughts in the history of the US and the involvement by newer participants such as commodity funds. Supply and demand factors around the globe are generating large gyrations in the KC HRW vs Chicago Soft Red Winter (SRW) Wheat spread - the "Carb Arb" - creating interesting trading opportunities.

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