trading limit on wheat: What can I do?

Yes, you're right. I have been lucky to offset...The limit bid is 8500 lots right now. I don't know if there will be another reverse.

Even if I hedge with other products, I have to do it right after I got stuck 'cause if I do it at the end of the day, the instruments will be priced fairly and will hedge just a part of the main loss.
 
(1) September is ~35-cents higher. December is probably trading ~5-cents above its limit. (2) Since September is in delivery, it trades without limit. If you were to really, really, really get in "trouble", you could scalp/trade Sep as a way of protecting yourself if you see it moving 40, 45, 50, 75-cents or a dollar higher. (3) If you see the Sep trade down to ~29 & 3/4-cents higher, the market might be able to knockout the pool of unfilled buy-orders and plunge lower. (4) If you believe that, consider putting in a sell-stop in the December at 805 & 1/4.
 
Quote from TraDaToR:

OK thanks for your advices, I think I know what I'll do if i'm still short tonight..

Dogfish, I don't know exactly how the uncrossing algorithm works but I think that the big bid just below limit will get all below offers at the day session open. Am i right?
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Yes that's right and it can all change in the seconds approaching the open. At the time I wrote there were offers below limit with no bids above but I doubt you would have had much of a look in at the open.

Good to hear you got out. There was a USDA report on corn I remember a few months back and market simply locked down on the open 3 or four days in a row, instantly, so be careful just looking to take a few tics on a pullback it doesn't always happen
 
Quote from austinp:

Two things:

#1: Basement level grain prices of the past few years are gone for a long time.

#2: Food prices will adjust upward at every single place that sells anything edible to the public. Significantly.
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Great thoughts, but is it really different this time? Looking at a 25 yr chart of W this looks like the usual spike that briefly lasts and then plummets. So you think we are setting up for a new plateau?

BTW can you rec a good site that covers all these fundies? Thx.

P.S. Shorted YW at 830 tonight just for fun :p
 
Question about ECBOT ZW options. Can't figure out when these things trade. On IB I got bid/ask quotes tonight about 7-8 pm EST. Went to get something to eat, came back and the bid/asks are all gone like the contracts are all asleep. WTF?

From CBOT website:

<i>Trading Hours
Open Auction: 9:30 a.m. - 1:15 p.m. Central Time, Mon-Fri.
Electronic: 6:34 p.m. - 6:00 a.m. Central Time, Sun.-Fri.</i>

And you gotta love those bid/ask spreads of 60-70% like 9 bid ask 15. Nice.
 
Quote from Dogfish:

Yes that's right and it can all change in the seconds approaching the open. At the time I wrote there were offers below limit with no bids above but I doubt you would have had much of a look in at the open.

Good to hear you got out. There was a USDA report on corn I remember a few months back and market simply locked down on the open 3 or four days in a row, instantly, so be careful just looking to take a few tics on a pullback it doesn't always happen
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At the time, there was a 480 ask 20 ticks below the 780 limit offer. I just thought it was a reverse clue and placed my bid in between. I got filled, definitely lucky, 'cause of a 780 market short at the open( don't know what the guy is doing now )...I looked at the book yesterday afternoon and all I could see was a growing bid( 31000 at a time... )

Kansas City Wheat got limit up too, so i couldn't hedge with it... I would probably have taken a few calls but i would have definitely lost a bit on this thing.

Now, I'm working at "not to get caught" in these kind of things

Thank you all.
 
Ct-2

Looks like a serious bull. I do not trade Wheat or Cotton for the record.

But man, you guys are gona have some good days ahead.
 
Quote from nazzdack:

This will stop the bull market in wheat dead in it's tracks............."Wheat will hit $13/bushel before soybeans."
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Who said that? $13 wheat?? Maybe not impossible, but improbable. Who's gonna buy at that price?
 
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