I have always enjoyed executing the fundamental based spread of buying wheat and selling corn when corn prices start to top wheat prices. There are not many trades where a commodity trader can say he never lost money. (I can only recall two!)

Yesterday's WSJ article spoke to the economic logic that usually makes the trade work (e.g. feeding cost). However, the current volatility of markets, aided by the CFTC's approval of new corn limits, does not make for logical supply/demand trading.

Monday on CNBC, a commodity analyst advised that trading commodities had more to do with "your economic outlook" than any government report. Does that explain gold breaking the $1700 barrier and crude dropping over $10 a barrel??

A Cargill manager once told me, trade your market and focus on the least cost factors. This was in the "old days" when I had responsibility for Missouri River barge soybeans vs. rail beans to the Gulf. In today's environment can Cargill afford the current "risk management" exposure of sticking with "logical" market strategies?