Could anyone tell me what contracts are actively traded? I notice some contracts are really liquid while others have absolutely nothing going on.
Thanks
Thanks
most farmers buy puts rather than short the futures. Daily volume can be deceptive, only a few trade each day, but the the over all volume over a season can be large.Quote from TradingPilot:
Could anyone tell me what contracts are actively traded? I notice some contracts are really liquid while others have absolutely nothing going on.
Thanks
Actually... unlike miners, most farmers (producers of aggs) go long - ergo they buy calls or buy futures. "I will leave it to the reader to work out" the reasoning why, but it's pretty counterintuitive at first and very intuitive once you think about it.Quote from oldtime:
most farmers buy puts rather than short the futures. Daily volume can be deceptive, only a few trade each day, but the the over all volume over a season can be large.
you need a long term perspective and only trade new crop which would be
July wheat
November beans
December corn
no kidding, these farmers would come in to the "commodity office" as they called it in their overalls, claiming they were doing business, when in fact almost all of them went out long with a promise from me to "not tell their wives" but the few that actually do hedge usually prefer the puts.Quote from sle:
Actually... unlike miners, most farmers (producers of aggs) go long - ergo they buy calls or buy futures. "I will leave it to the reader to work out" the reasoning why, but it's pretty counterintuitive at first and very intuitive once you think about it.