Relationship-Based Trading in Agricultural Products

Effective January 8 pending regulatory approval, CME Group will expand relationship-based trading, in the form of block trades and certain types of crosses on Globex, to the full suite of CME and CBOT agricultural products. Relationship-based trading, encompasses communication between market participants for the purpose of discerning interest in and facilitation of executing a transaction. … Read More

VIX-Yield Curve: At the Door of High Volatility?

VIX-Yield Curve: At the Door of High Volatility? By Erik Norland, Senior Economist, CME Group Highlights VIX-yield curve charts show four stages before an economic downturn The telltale signs were present during the tech bubble, Great Recession U.S. currently in the mid-to-late stage of that economic cycle Further Fed tightening could eventually lead to a surge … Read More

Saudi Arabia: Turbulence on the Horizon?

Saudi Arabia: Turbulence on the Horizon? By Erik Norland, Senior Economist, CME Group Highlights Oil market unfazed by Saudi Arabia’s ambitious reform plans Princes, billionaires and officials arrested in anti-corruption drive Any backlash could cause instability in Saudi oil-rich Shiite regions U.S. oil companies potential winners if Saudi supply is disrupted Read Full Article NYMEX WTI … Read More

Wheat: Will High Inventory Further Dent Prices?

Wheat: Will High Inventory Further Dent Prices? By Erik Norland, Senior Economist, CME Group Highlights CBOT wheat has tumbled more than 50% over the past five years Stocks-to-use ratio has a strong, inverse correlation to prices But stocks-to-use ratio does not influence future price trends Price volatility tends to be relatively low when inventory is high … Read More

What to Expect from a Prime Minister Corbyn

UK: What to Expect from a Prime Minister Corbyn By Erik Norland, Senior Economist, CME Group Highlights Theresa May’s tenure as UK Prime Minister on shaky ground Pound could weaken further versus U.S. dollar if Brexit talks stall If Brexit is abandoned, pound could rise against dollar, euro Higher taxes under a Labour government could weaken … Read More