"Sell now, ask later" was all traders were hearing since the opening bell on Monday. The earthquake followed by a tsunami in Japan has put a lot of uncertainty about the global economy which only intensified when a nuclear crisis drove traders to reduce risk in a host of markets. Traders and funds kept unloading their positions as prices kept falling.

The tension in North Africa also added pressure to the selloff. Many markets across the exchange were hitting their daily limits, such as corn, soybeans, rice, oat, cotton, live cattle, and lean hogs. Japan is the biggest customer for U.S. corn and a key consumer of soybeans and wheat. Commodity funds were heavy sellers Tuesday morning after the nuclear crisis threatened the country of Japan. Funds unloaded an estimated 30,000 contracts of corn, 16,000 contracts of soybeans, and 12,000 contracts of wheat causing corn and soybeans to settle at their daily imposed limit down prices. Wheat was a couple cents short of hitting their limit offer.

When any grain market settles at their limit bid or offer, the CME Group will expand the corresponding commodities limit prices. As the volatility increased throughout the week, the VIX (volatility index, a measure of market volatility) advanced nearly 30% on Wednesday causing a fall out in many markets. The Corn futures market got a big surprise on Thursday as China stepped in unexpectedly and showed renewed interest in purchasing U.S. Corn. This news caused the bears to run for cover at the opening bell as Corn hit their limit bid of 30 cents within the first 15 minutes. Corn remained lock limit up, in which the CME Group expanded Corn limits to 45 cents for the Friday trading day.

Corn helped fuel the rally in Soybeans and Wheat as well. Volatility dried up into Friday’s session as traders’ confidence rose. Corn futures once again traded at their limit up bid during the opening bell, but came off only to settle the day up 37 cents. The grain complex had recovered all their losses that they experienced during the Japan crisis. After a tumultuous week of trading, Corn settled the week up on the higher levels of their weekly range. Soybeans and Wheat also were able to regain losses and closed at the higher levels of their weekly range.

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