Wheat finished higher Monday supported by concerns we could see some lost production in the coming days as cold temperatures are set to hit parts of the plains and with a huge amount of the U.S. wheat crop out of dormancy because of early season heat we likely could see a reduction in yield if these temperatures are very widespread.
We ended the month of February with many of our agricultural markets at or near six-year lows. In most cases our move to these levels has been gradual. In fact, soybean futures just logged their narrowest monthly trading range in a decade. Implied volatility has responded in kind with soybean, wheat and corn volatility all trading at multi-year lows.