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CME analysis notes that corn, soybean and wheat implied volatility is exceptionally low even though a La Niña has set in. Historically, grain volatility has run about 1.3 to 1.5 times normal during past La Niña episodes.
Low options volatility suggests the market is not pricing in weather risk, so a shift in La Niña strength could produce sharp price moves in grains and soymeal.
cmegroup.comFeb 14, 2018Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
