Ag trade ideas
- Thread starter TraDaToR
- Start date
From what I have gathered, the industry is screaming for the LE to become a cash-settled future, rather than deliverable. I am also wondering if that could allow expanding the actual trading hours from the paltry 4 hours per day to something greater (on CME). Oh, and the hi/lo limits are insane. 3 points up or down from previous day's settlement? Yeesh, doesn't seem healthy.
I am still trying to teach myself the cattle industry, but I find it all fascinating.
If you wish to keep abreast of Cattle markets without too much headache, check this link every morning ~7-8AM Eastern time. Great stuff in here; A good consolidation of data, with weekly commentary near the bottom.
http://www.agcenter.com/newcattlereport.aspx
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Hmm, haven't checked into softs lately, but ouch?
http://www.cmegroup.com/europe/products/agricultural/softs/physically-delivered-cocoa.html
http://www.cmegroup.com/europe/products/agricultural/softs/physically-delivered-cocoa.html
Nobody trades softs on CME - just like nobody trades grains on ICE (with the exception of canola I guess). Both sides simply need to delist the copycat contracts, period.
On which exchange are the softs like cocoa traded?
The live cattle contract has been around for years, what is the cme going to do to fix it ?Stay away from live cattle futures until the CME fixes them. They are a work-in-progress at this point. The live cows are in room 237. Stay OUT! You hear me? Stay OUT!
I trade cattle and have for years, there is nothing broken with the contract.
Cash settlement is not viable for the live cattle contract. The contract is a true hedging tool and producers must be able to make or take dlvry
Well, how about today where LE bounced off the high-limit? And as of this typing, it looks like it is about to hit the high-limit again. Only a 3-point up or down limit? That's only $1,200 of maximum from open. Isn't that restrictive?
In any case, cash or physical delivery, you don't want a position on First Notice Day. Retendering that contract after assignment can generate a fee up to $200 per contract.
This weeds out a lot of convergence to spot trades because the most traders will be forced to exit and the bulk of the convergence move happens after First Notice Day.
This weeds out a lot of convergence to spot trades because the most traders will be forced to exit and the bulk of the convergence move happens after First Notice Day.
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No I disagree
3 point move equals around a 36 dollar per head move in a physical fed steer.
Go back and look at how many times we hit limit either way. It's not a big %
We didn't close limit that day and 122.90 was HOD the next day ( today )
Cash fed cattle are selling as high as 136 this week very strong but action in April contract wasn't very good today