Wheat hits lock limit 12-12

Wheat has hit its lock limit today. I have noticed that wheat frequently hits its daily lock limit, occurring more with wheat than any other grain.

What is Lock Limit?

The Chicago Board of Trade has imposed a limit on how much each of the grains can increase (or decrease) in price each day. Wheat can only increase/decrease $.30 (30 cents) each day, after which prices reach their "lock limit" price. Often prices will then remain at that price for the remainder of the day's trading session.

Today, wheat prices have locked limit at the price of $9.40 4/8. Sometimes, as traders take profits, prices will back off the lock limit price and go back down. However, more frequently, if demand is high, prices will "lock" and remain at that price through the remainder of the day. Prices will "unlock", so-to-speak, at the beginning of the next trading day, which is 7:30 pm EST. Often, prices will reverse when the lock comes off, just as precipitously as they went the other direction the day before. This phenomena of up one day and down the next happens quite frequently with wheat prices.