After US Equities sold off yesterday following a tweet from President Trump that he would cease stimulus negotiations, stocks screamed higher today, presumably on hopes that agreements on more targeted aid packages could be reached. Ultimately, all four major US Indexes were trading about 2% higher on the day as we head into a much-anticipated Vice Presidential debate tonight.
Elsewhere at CME Group, US Treasury Futures prices were down throughout the yield curve with the US Bond down by over a point and the Ultra T-Bond down by over 2.5 points, indicating higher yields. In commodity markets, WTI Crude Oil and Gold futures prices were down by about 1.65% and 1% respectively, while Wheat futures prices were up by over 2.5%.
For the second day in a row, we’re going to showcase a CME Group grain product in our QuikStrike image, this time Wheat futures. As you can see in the upper graph, both the price and volatility in Wheat futures and options have risen substantially over the last couple of weeks. In fact, if we go back to 2013, December volatility is higher right now than it was at this time in October in any year, as you can see in the lower graph.