Grain Futures Prices Continue To Rally

By Craig Bewick
APR 21 2021

US Equity Index prices rebounded from recent losses while implied volatility in CME Group’s index options markets slipped back toward recent low levels.  Commodity markets were more active on CME Group’s price board today with the following notable moves:

  • Agricultural Markets
    • Corn futures prices up by over 2.25%
    • Soybean futures prices up by over 1.5%
    • Wheat futures prices up by over 2%
  • Energy Markets
    • WTI Crude Oil futures prices down by over 2.5%
    • Natural Gas futures prices down by 1%
  • Metals
    • Gold futures prices up by about 1%
    • Silver up by nearly 3.5%
    • Copper up another 1.75% - The rise in Copper prices represents multi-year high levels while volatility has crept up slightly.  The skew has shifted toward the Calls as well but not dramatically

As you can see in the orange line in the QuikStrike graphs below, Soybean and Corn futures are trading at recent high levels and Wheat is approaching recent highs.  In fact, we have to go back to 2013-14 to find the last time that grains prices were this high.  Also, as depicted by the blue line, you can see implied volatility rocketing back up in the grains options markets as well.  There is a potentially market-moving WASDE report scheduled for May 12th and we will continue to report on the price and volatility action in the grains markets as we approach that release. 

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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