Wheat Limit Up AGAIN (+60 cents)

[detective]

No, when it reaches limit up or down, there just isn't any trading going on, but the trading session is still active, it can go to limit and get off it during the session.

 

[tr51]

Quote from daddyeaux:

farmers who shorted to hedge their crops are now getting margin calls

silver miners that sold forward to hedge future production or to meet loan agreements went bust during the Bunker Hunt silver run up in '80 since they couldn't meet margin on their short positions...

a great number of farmers put on their hedges when they commit cash sales to the grain companies.....no margin call to the farmers only lost opportunity costs.

 

[daddyeaux]

Quote from tr51:

a great number of farmers put on their hedges when they commit cash sales to the grain companies.....no margin call to the farmers only lost opportunity costs.

I understand that farmers can commit all they grow to a co-op or otherwise,

but short futures is just that, you still have to meet the margins

 

[startraitor]

A foward sale is just a cash position, basis trading. Most farmers sell in the cash market and hedge in the futures. Hence they would be long.

Quote from daddyeaux:

I understand that farmers can commit all they grow to a co-op or otherwise,

but short futures is just that, you still have to meet the margins

 

[bt116]

How long do they break for if there is a limit up?

Looks like at the end of feb, mgex is removing limits on the spot month altogether.

 

[Asparagus]

i think weat is on the LSE

DBA and RJA are a couple of etfs (ns) that can get you some exposure...not sure if there is a pure play other than derrivitaves....anyone?

Quote from monstercat:

is the symbol for the wheat etf weat? that symbol won't come up

 

[startraitor]

Look who has been buying up the seats. A hedge fund. Follow the biggest participants. Urbana! They control the underlying as well.

http://www.mgex.com/MembershipTransfers.html

 

[cszulc]

Quote from bt116:

How long do they break for if there is a limit up?

Looks like at the end of feb, mgex is removing limits on the spot month altogether.

There is no break, just no one selling (all bids at the limit up level tonight at $11.53). Still activity going on in May futures (currently up 45 cents, was at the limit for a little while before coming off).

 

[The Kin2]

Quote from cszulc:

There is no break, just no one selling (all bids at the limit up level tonight at $11.53). Still activity going on in May futures (currently up 45 cents, was at the limit for a little while before coming off).

If and only if May closes limit up. We get more fun tomorrow as limits will be raised to +90 cents!!

Who knew wheat could be so fastinating.

 

[cszulc]

I think we'll see a lot of buying by the locals to cover shorts tomorrow. Wheat is seeing a good amount of bids at the low of the day ($11.43), CBOT market not moving much, which always slows after 9 anyway.