Ag Hedging Costs Could Spike if La Niña Strikes

Off The Charts! examines the pertinent economic issues of the day, providing a deeper dive into complex topics and framing the issues in a way that can lead to a better understanding of the financial and commodities markets.

        • Duration 08:36
        • Grain markets are not overly concerned of a La Niña, with options implied volatility near lows, but hedging costs could spike quickly if the weather bites.
      • 08:36
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About the Presenter

Erik Norland is Executive Director and Senior Economist of CME Group. He is responsible for generating economic analysis on global financial markets by identifying emerging trends, evaluating economic factors and forecasting their impact on CME Group and the company’s business strategy, and upon those who trade in its various markets. He is also one of CME Group’s spokespeople on global economic, financial and geopolitical conditions.

View more reports from Erik Norland, Executive Director and Senior Economist of CME Group.

Hedging La Nina

The La Niña weather phenomenon looming on the horizon can bring bearish sentiment to grain markets for corn, soybeans and wheat while dramatically increasing volatility. Hedge against the potential for prices to gyrate more than normal during this event with CME Group futures and options .

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