Who would have ever thought. And remember when we said "DBA" at $28? Look where it is now... Maybe consumable commodities ARE the next bubble after all..
Word to the wise - go stock up on hamburger buns and cornflakes ASAP!!!
CHICAGO (Reuters) - Expanded daily trading limits and sharply higher margin requirements to trade soaring U.S. wheat futures have changed the game and left traders wondering how the market will react.
"It is a very big deal," said Vic Lespinasse, a veteran grain market analyst for Illinois Grain, a brokerage house. "I do not know what is going to happen."
"There is a good chance on Monday that we will probably trade limit up again," said Markus Groebner, a wheat options trader at the Kansas City Board of Trade. "I just hope that we use it as a hedging tool and not as a financial toy."
To cool speculative frenzy, the exchanges have also set sharply higher margin requirements -- good faith deposits paid to hold futures positions -- for wheat traders. Costlier margins often cast a bearish tone on markets, Lespinasse said.