Market Matters Blog
Katie Micik DTN Markets Editor

Monday 03/17/14

Intuitive, with the Potential for Confusion
CME Group's new variable daily price limit mechanism replaces its "ad-hoc" fixed method with a fluid tool. It's intuitive that the limit should be higher when prices are higher and vice versa, but the new mechanism could introduce a little more confusion.[Read Full Blog Post]
Posted at 11:57AM CDT 03/17/14 by Katie Micik | Post a Comment
Comments (3)
Sounds like a hood plan although I'm with Mr. Hofmeyer I don't think it will make a lot of difference. The one good thing as for me when My neighbors ask what is the limit for corn I can say if CME would stop changing it I could tell you. It will be easier for me not to sound so dumb. Ha Ha !! I enjoy your articles Katie.
Posted by WARREN HARDY at 7:17AM CDT 03/18/14
How does 42 cents round to 45 cents? (see Newsome quote). This system seems fair to me. Keeping the daily limit at a level percent of price makes lots of sense. The displays that show current futures prices need to have the daily limit incorporated into the display, maybe just behind the commodity title.
Posted by Jim Williams at 2:42PM CDT 03/18/14
Hi Jim -- You are correct, in Newsom's simplified analysis, it should probably be 40 cents instead of 45. However, when I computed the 45-day averages, they were far from round numbers. So it's possible the 7% figure could be something like $.42617, which could be rounded up to 45.
Posted by KATIE MICIK at 2:57PM CDT 03/18/14
Blog Home Pages
March  2014
S M T W T F S
                  1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31               
Subscribe to Market Matters Blog RSS
Recent Blog Posts
  • A Demand Optimist
  • Elevator Manager: Fall Harvest Could Be "Complete Disaster" Without Rail Cars
  • A Full Notebook
  • Is Tuesday's Minneapolis Cash Trade a Sign of Things to Come?
  • SD Shipper: "No Train, No Grain"
  • StatsCan Reports Canadian Production to fall Below Expectations
  • Rail Backlogs Continue
  • Harvest Storage, Transport Worries
  • Merchandising Makes Money Once Again
  • Upper Mississippi River Closed Again
  • Dread Grows as Harvest Nears
  • Imaginary Numbers
  • Grain Shippers Worry Upcoming Harvest Will Put Railroads Further Behind
  • Winning at the Waiting Game? Not in Ag Commodities
  • Eight Locks and Dams Still Closed; St. Louis Rises Above Flood Stage
  • Informa Pegs Corn Yield at 165 BPA, Soybeans at 44.5 BPA
  • Reports Revive Old Questions
  • Heavy Rains in the Upper Midwest Hampering Rail and Barge Traffic
  • Spring Rains Forced Some Regions to Switch Acres to Soybeans
  • Meal Did What???