Limit Moves in the Grains (Part 2)

We had a sweet limit down move in corn futures today so its a perfect time to highlight limit moves in grains and show you how I traded the action today!

One of the most interesting aspects of the grain futures is the frequency and power of daily limit moves in price. Drier than expected weather in Iowa cornfields can move the price of corn violently. A freak thunderstorm in the plains can make wheat rally hard. Soybeans can tank or rise with the fluctuation of oil prices intra-day. All this and more can make forced liquidation an exciting trading opportunity in the grains futures, both on the way up and down.

As I described last week in "Part 1" of Trading the Grains, corn, wheat, and soybeans are a true momentum market in which the pit session is open from 10:30 am EST-2:15 pm EST. Here are some of the basic specs of contract months and LIMIT price rules:

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