Can someone tell me where I can find some good introduction (books or websites) to grain futures trading, such as what factors affect the movement of grain futures, seasonal pattern, correlation between ZC, ZS and ZW, etc.? Is there any website where I can check the most recent news moving grain markets? Help is greatly appreciated.
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introduction to grain futures trading
- Thread starter clearpicks
- Start date
Good place to start. They have a ton of education material.
http://www.cbot.com/cbot/pub/page/0,3181,963,00.html
http://www.cbot.com/cbot/pub/page/0,3181,963,00.html
Here's something interesting from CBOT. Got it in an email:
CBOT mini-sized Agricultural Futures
mini-sized ― MAXIMUM BENEFITS
Coming to e-cbot® on May 14 Trade Date
KEY FEATURES
Trading Hours:
e-cbot: 6:30 p.m. to 6:00 a.m.* Sunday through Friday (Chicago time)
Open Auction: 9:30 a.m. to 1:45 p.m. Monday through Friday (Chicago time)
Contract Size:
1,000 bushel contracts
Metric ton equivalents: Corn 25 mt, Soybeans 27 mt, Wheat 27 mt
Pricing Unit (U.S. currency):
Cents per bushels
Tick Size (minimum price fluctuation):
1/8 cent per bushel ($1.25/contract)
Directed Fungibility Ratio:
5 mini-sized contracts to 1 full-sized contract
For more information:
Call a CBOT Product Manager at 312-341-7955
Links:
Directed Fungibility
CBOT mini-sized Corn futures specifications
CBOT mini-sized Soybean futures specifications
CBOT mini-sized Wheat futures specifications
Press Release
*Staggered opening times on e-cbot:
CBOT mini-sized Corn at 6:30 p.m.
CBOT mini-sized Soybeans at 6:31 p.m
CBOT mini-sized Wheat at 6:32 p.m.
CBOT mini-sized Agricultural Futures
mini-sized ― MAXIMUM BENEFITS
Coming to e-cbot® on May 14 Trade Date
KEY FEATURES
Trading Hours:
e-cbot: 6:30 p.m. to 6:00 a.m.* Sunday through Friday (Chicago time)
Open Auction: 9:30 a.m. to 1:45 p.m. Monday through Friday (Chicago time)
Contract Size:
1,000 bushel contracts
Metric ton equivalents: Corn 25 mt, Soybeans 27 mt, Wheat 27 mt
Pricing Unit (U.S. currency):
Cents per bushels
Tick Size (minimum price fluctuation):
1/8 cent per bushel ($1.25/contract)
Directed Fungibility Ratio:
5 mini-sized contracts to 1 full-sized contract
For more information:
Call a CBOT Product Manager at 312-341-7955
Links:
Directed Fungibility
CBOT mini-sized Corn futures specifications
CBOT mini-sized Soybean futures specifications
CBOT mini-sized Wheat futures specifications
Press Release
*Staggered opening times on e-cbot:
CBOT mini-sized Corn at 6:30 p.m.
CBOT mini-sized Soybeans at 6:31 p.m
CBOT mini-sized Wheat at 6:32 p.m.
You might want to check out the "The Complete Idiot's Guide to Options and Futures". I haven't read it, but I've heard good things. And I came across this page yesterday which I thought had some really good, basic info: http://books.google.com/books?vid=I...res&sig=q-AsbuCCYtJ0duJeJJoHQWFUvgY#PPA155,M1
Best regards,
Best regards,
Yes, they are fungible.
http://www.financialnews-us.com/index.cfm?page=ustradingtechnology&contentid=531054
http://www.financialnews-us.com/index.cfm?page=ustradingtechnology&contentid=531054
Quote from bunkinc:
Why do they even bother? It will be just another dead contract, and it will take liquidity away from fullsize... besides, it's too small. What a waste.
Normally I'd agree with you but I'll make a contrary argument.
a. For years Chicago's Mid America Exchange traded 1000 bushel contracts with success. A slew of great traders came from those pits including Rich Dennis.
b. 5000 bushels, particularly in Soybeans, is a large hedge for smaller farms. Not to mention what if a farmer has 7000 bushels to hedge? A full size 1 lot is too little, a 2 lot is too much.
c. I envision a time in the near future when grain prices will be so high and volatility (at least in price if not in % terms) so great that many retail traders will be sized out 5000 bushel contracts in beans.