Research: Ag Markets Appear Unprepared for La Niña

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Options Markets Complacent Ahead of La Niña

By Erik Norland, Senior Economist, CME Group

Highlights:

  • La Niña on the horizon but grain markets seem unperturbed
  • Options implied volatility is at or near record lows for grains
  • La Niña associated with high volatility and bearish sentiment