I just wanted to pass on to you info that would suggest that a lot of grain selling today and yesterday can be tied to the following update from AG Resource. Some traders are arguing that Wednesday's meltdown was partially due to the CFTC disallowing CBOT members from using their membership value for margin and that for members making directional bets in the market - that they no longer will be offered lower hedge margins. The margins will now rise to "speculative" status (just like everyone else). Long liquidation quickened yesterday on the news as CBOT members would have to come up with additional margin funds and they simply got out of or reduced position size in the grains. It has been a tough week on the CBOT amid its grain "turf battle" with ICE and now the ruling from the CFTC. CME stock value has declined, but it should be noted that grains only account for 10% of its entire CME volume.
Also keep in mind wheat futures in Paris have not dropped much at all in the past two weeks, the Ukraine and also China is experiencing temps in the 90's with China 90's -100's. This will create value buying next week if weather doesn't improve there.
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