Weather Alert

Wild Grain Futures Swings Could Get Even Wilder

Double-digit moves for soybeans could potentially become triple-digit swings starting Sunday night.  The CME Group announced last week that starting with the May second overnight session, the daily price limits for the Chicago Board of Trade grain and soy futures will increase.  Corn futures would expand from 25¢ per bushel to 40¢, winter wheat would expand from 40¢ to 45¢, and soybeans would go from 70¢ to $1 per bushel.  The limits would continue to expand 50 percent for the day after a close at a maxxed-out gain or loss.  Grain prices have seen significant fluctuations in recent weeks as domestic stockpiles tighten, foreign demand increases, and crop conditions in Brazil and Argentina have come into question amid dry conditions.

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