Volatility in the commodity markets has traders very wary of being caught on the wrong side of the market. Midwest Market Solutions President Brian Hoops says the volatility is a combination of speculative interest and electronic trading. “The biggest thing is that there are hedgers and speculators whose funds got caught in it when the market rallied and to buy their way back out, they did anything they could to get some coverage.” Hoops says the volatility is also impacting the basis values. “You look at the cash markets and the basis levels are starting to fall back. A lot of elevators are moving bids away from the May into different months so that they can actually do some hedging. We’re seeing the market trying to remove some of that premium we pumped into it.”