Trading volume in the grain market is thinning out. In addition to the usual winter lull, Chinese markets are closed until Feb. 3 for Lunar New Year holidays. But dull markets still provide opportunity for farmers needing to manage risk. Implied volatility, which influences the cost of options, is also low, making puts in the corn market cheaper. This lack of fear can also be seen on Wall Street, where record prices have lowered the so-called “fear index” to very low levels.

Senior Editor Bryce Knorr offers his insight into overnight trade, listen using the audio tool on this page.

Bryce Knorr first joined Farm Futures Magazine in 1987. In addition to analyzing and writing about the commodity markets, he is a former futures introducing broker and is a registered Commodity Trading Advisor. He conducts Farm Futures exclusive surveys on acreage, production and management issues and is one of the analysts regularly contracted by business wire services before major USDA crop reports. Besides the Morning Call on www.FarmFutures.com he writes weekly reviews for corn, soybeans, and wheat that include selling price targets, charts and seasonal trends. His other weekly reviews on basis, energy, fertilizer and financial markets and feature price forecasts for key crop inputs. A journalist with 38 years of experience, he received the Master Writers Award from the American Agricultural Editors Association.