God I hope you’re not stuck short on these….
That’s bad news – those are all lock-limit up.
For those who have never traded commodities, there is a maximum daily price move. When that limit is hit trading stops.
What this means is that it is entirely possible for exactly one trade to go off at the limit price and lock trading. You’re stuck with whatever position you have at that point.
If you’re short and you lock-limit up the good news is that the damage stops (for that day) there.
The bad news is that there’s nothing you can do about the damage, up to and including being driven into a margin call, which can bankrupt you.
This is just pure ugly…… anyone who thinks this is “good news” in some way needs their head examined. This isn’t a single crop, it’s across-the-board.
“Here it comes” in the grains….. and your food prices……
(Report on the wire relating to corn production expecting a poorer harvest… but man, the reflection everywhere else? I don’t think this is that simple.)