Hi Folks,

The reaction of Corn, Wheat, and Soybeans prices (Nearby +1 contracts) to the USDA crop report released today, on the 12th September 2013.

Some things to note:

• Notice that the volume of contracts traded today was significantly higher than usual as we had discussed in class
• Notice that all 3 commodities plunged in early trading, but by the end of the trading session, Corn ended lower, Wheat slightly higher, and Soybeans significantly higher.  Note that here we are talking about nearby prices (2nd nearby contract, to be exact).
• In addition, the effect of the news on the futures curves (i.e. contracts further out in time) has been quite different for the 3 commodities – I’ll let you guys investigate

These would be great topics to blog about in your upcoming blogpost and I look forward to reading some great stories

Charts from CMEGroup (note that the time displayed is central time)
Note that Z3 refers to Dec 13 contract, while X3 refers to Nov 13 contract

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