Price bubbles and commodity markets

Athoughtful new paper from researchers at the University of Illinois marks a significant step forward in research on how commodity futures prices are formed. Until recently, the academic and policy debate about futures price formation has been locked in an acrimonious and polarized standoff between market fundamentalists, who insist all price moves reflect supply-and-demand fundamentals,

CME pares back grain trading hours

CME Group Inc. said March 5 that it plans to pare its nearly non-stop trading cycle for grains and oilseeds to 17-1/2 hours per session after traders complained a move to extend activity had hurt liquidity. CME, owner of the Chicago Board of Trade, sought to shorten the trading day less than a year after


Anxiety rises over possible Prairie seeding delays

ICE Futures Canada canola contracts posted good gains during the week ended March 22, as solid end-user demand, the weaker Canadian dollar, a slowdown in farmer selling, bullish technical signals, ongoing concerns over tightening old-crop supplies, new concerns over possible planting delays this spring, and logistical issues moving soybeans out of South America all served




CME expects volume to return in time

Reuters / CME Group’s plan to scale back its trading day for grain contracts will likely provide a boost to volume and liquidity, but traders said it will take time for investors to return to the market. “I think if they compress the hours again… it serves the needs of the customers who actually use


Commodifying the farm voice

For some reason during this day and age, it seems that the things that make the most common sense are the most unlikely to happen. Take for example, Danny Penner’s pitch for farm commodity groups to unify under one research, market promotion and policy umbrella (page 5 of last week’s issue). It makes perfect sense,

CWB lowers old-crop PRO in cereals

CWB has lowered Pool Return Outlooks (PROs) for wheat in its Harvest and Winter pools, according to an updated report released on March 15. Durum and barley PROs in the Harvest and Winter pools were also lowered, while canola values in both pools were unchanged to higher. Wheat PROs in the Harvest and Winter pools