Cme Ags And Question Of The Day

By Craig Bewick
JUL 20 2021

What a difference a day makes… after sharp declines in the US Equity markets yesterday, the major indexes roared back today, up between 1.6% and 3.2%.  US Treasury futures prices, which rallied sharply yesterday (lower yields) initially continued higher but then fell by almost two full points at around 8:30 AM Chicago time.  Ultimately, the US T-Bond was down by about ¾ point while implied volatility remains elevated. 

After several days of price declines, WTI Crude Oil futures were higher by about 1.75% today as were CME Group grain futures prices, led by Corn, up about 2.5%.  After hitting multi-year highs, grains prices have fallen recently so we thought we’d put the current price and volatility in perspective.  Corn has fallen about 16.5% since the beginning of July, Soybeans have declined by about 9.5% since early June while Wheat prices have rebounded to about mid-May levels.  To put it in perspective, we used QuikStrike graphs to show the current volatility (top portion of each graph in gray) and price (lower portion of each graph in gray) in the September expiry versus the years since 2016.  As you can see, even though price and volatility have come off the high levels we saw earlier this summer, they are both still trading above the levels we saw at this time in any year since 2016. 

REMEMBER TO ANSWER THE QUESTION OF THE DAY BELOW TO HAVE A CHANCE TO WIN A GIFT CERTIFICATE!

ABOUT THE AUTHOR

Craig Bewick has spent 25 years in futures and options markets, starting at CBOT and CME working in risk management, regulatory, technology, product management and client development. 

Connect with Craig at activetrader@cmegroup.com

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