The last week of February was wild for wheat futures, as demand, particularly for the high protein variety, put the market into hyper drive. Markets in Chicago, Minneapolis and Kansas City pushed the recently approved higher limits by first 60¢, then 90¢ and finally $1.35. The Minneapolis Exchange got CFTC approval to lift limits in the spot month, and on Monday, Feb. 25, its March contract rallied more than $5 to $25 per bushel.
Two days later, a broker from MF Global attempted to pick a top in Chicago wheat and lost $141 million. The red bars are approximately when he was getting short overnight, and the green bars show MF Global exiting the position in the first hour of regular trading. Looks like MF’s problem was no secret to traders.
