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CME Group's analysis notes that La Niña appears to be returning after a false start last year, with cooler-than-normal water along the Equator in the eastern Pacific. It states that corn, wheat and soybean options implied volatility is at or near record lows, leaving the markets potentially unprepared for a La Niña-driven volatility spike.
Record-low implied volatility means options are cheap, so any confirmed weather shock could trigger sharp price moves in corn, wheat and soy. Buyers should consider the risk of rapid price rises if La Niña impacts materialize.
cmegroup.comOct 2, 2017Not 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.
