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CME options data shows traders pricing a stronger fear of upside than downside for corn, hard red winter wheat, soybeans and soymeal as of February 20, 2018. Out-of-the-money calls carry higher premiums than puts, a volatility smile pattern.
Skewed call premiums signal that the market expects a greater chance of sharp price rallies, which raises the cost of protection for feed buyers who want to hedge upside exposure.
cmegroup.comFeb 22, 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.
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.
