The saying "not for the faint hearted" takes on a whole new meaning
Minneapolis March wheat, free of limit restrictions under new rules just introduced by the exchange, last night hit a record high of $25 per bushel before closing up $4.75 at $24.00/bushel.
No you haven't read that wrong, UP 475 CENTS IN ONE GO.
The equivalent of almost 8 limit moves in Chicago in one fell swoop. Up almost 25% in one session and up almost 132% since the start of 2008!!
Overnight trade sees nearby March down 120c as I type at 11am this morning.
Certainly fluctuations of that magnitude are only for the very largest of players as one margin call could wipe out a small trader.
Another indication to my mind that the physical market is becoming more & more divorced from the futures market.
No you haven't read that wrong, UP 475 CENTS IN ONE GO.
The equivalent of almost 8 limit moves in Chicago in one fell swoop. Up almost 25% in one session and up almost 132% since the start of 2008!!
Overnight trade sees nearby March down 120c as I type at 11am this morning.
Certainly fluctuations of that magnitude are only for the very largest of players as one margin call could wipe out a small trader.
Another indication to my mind that the physical market is becoming more & more divorced from the futures market.
