Photographer: Daniel Acker/Bloomberg
Odd Lots: Why the Most Exciting Market in the World Right Now Is in Wheat
Financial markets globally are experiencing a long period of low volatility and boredom. But there's one pocket of the market that's seeing some wild action, and that is in grains. Spring wheat, a form of high protein wheat grown in the Northern Midwest, has been on a tear, alongside volatile action in soy and corn. So what explains the whipsaw action?
On this week's episode, we talk to Tommy Grisafi, a longtime trader, who works as a risk manager at Advance Trading, a firm which helps farmers take advantage of financial markets. Grisafi walks us through the history of the market, how technology is dramatically changing the space, and why things have suddenly gotten so volatile.