Trading Grain Spreads Using a Fundamental Approach

Quote from b.hull:

New to this and may in fact be delusional but electronic prices appear to have neglected an important fundamental component to last nite's price.

We rolled out of July on June 20th, and our models in both ZC Z1-Z2 and ZC U1-Z1 have been short bias since early March. Today's price action was very good for us. ZW U1-Z1 has been a short bias since mid-February, but looks like we are working on a trend change to a buy bias in the near future. ZS U1-X1 has been a short bias since January, but like Wheat looks to be progressing towards a long bias in the near future. So, whatever your point is, today was great for us at least.
 
Quote from b.hull:

Local,

I have reviewed the posts you have made over the past year and found your strategies to be remarkably successful. If I am objective about this, I find that your experience has given you the conviction to formulate and execute strategies for commodity spreads prior to those strategies revealing themselves as trends.

I have found TA analysis to be limiting and would appreciate your oppinion on how to further educate myself about the use of fundamentals and commodity spreads.

Thanks in advance.

Here is a question for u.

Figure out why december corn and nov beans spread are widening?

If u know the answer to that question, u are starting to learn the fundamental of grain spread trade.
 
Quote from bone:

We rolled out of July on June 20th, and our models in both ZC Z1-Z2 and ZC U1-Z1 have been short bias since early March. Today's price action was very good for us. ZW U1-Z1 has been a short bias since mid-February, but looks like we are working on a trend change to a buy bias in the near future. ZS U1-X1 has been a short bias since January, but like Wheat looks to be progressing towards a long bias in the near future. So, whatever your point is, today was great for us at least.

Today's Confirmation:

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Hey local or bone, what are some good books or info that a beginner could read or study on Grain spreads. I'm quite interested in this area of the markets and its difficult to find very much info on it.
 
-Courtney Smith "Futures spread trading: the complete guide"

-The encyclopedia of spreads from MRCI

-Not Keith Schap
 
Quote from TraDaToR:

-Courtney Smith "Futures spread trading: the complete guide"

-The encyclopedia of spreads from MRCI

-Not Keith Schap

Already read both of those. If I suscribe to MRCI's site is it worth it? Ive seen people here say that its a good service but don't use their recomendations. What do you think?
 
I don't use it, but I know a lot of people do. You can use them for charts, comments... but I think it is better to find your own spreads through research.
 
Quote from actionzip54:

Already read both of those. If I suscribe to MRCI's site is it worth it? Ive seen people here say that its a good service but don't use their recomendations. What do you think?



I use Mrci, but not their recommendations. The data and charts they offer are nice and you can scan the market rapidly...

I also use http://www.scarrtrading.com/Home.action , Is a very useful site, you can set up your own charts, seasonal, stacked,continuous, etc, quite all you need for spread trading... also you can check the spread calculator, and you can find out the odd`s of your trade based on the past data.. I really like it..

If someone what to subscribe, I have some Coupons, so you can get some % off the price you have on the web site... !!!!! (send me a private message)

Sorry for my English

greg
 
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