Soybean and corn prices remain lock limit down, and probably will continue to remain in this condition the rest of the day. With more than 62,000 contracts pending for soybeans, and more than 13,000 contracts pending for corn, there is almost no possibility of these two grains trading again until Sunday evening. If this situation persists, margins will be increased and margin calls will cause even greater volatility in future days, as brokers are forced to liquidate trader positions to cover increased margins.
Wheat, however, continues to provide excellent trading opportunities, even though volume is somewhat thin today. Note the difference between the smooth, clean trading on the tick chart (right) versus the erratic conditions shown on the 3 minute chart (on the left). Both charts represent the same period of time. It is obvious why trading the tick chart is so much easier! During the trading session for wheat today, these trades have take place rather slowly. This makes for good trading conditions, because I don't feel as rushed to make decisions and execute my trades under pressure. What a great day to trade!
