Trading the weather

G

granville

Does anyone do this? The CME's weather futures seem to have some VERY extreme price fluctuations. Looks like an interesting market to trade.
 
yes, I concure... but the price moves from $10 to $180 and back down to $10 in nice trends during the course of a year.

I would think that liquidity is growing and so I wonder if anyone has tried this market. I don't know of any market that moves this much (without leverage).
 
Focus instead on weather sensitive markets, i.e. grains during the summer & livestock, orange juice and natural gas during the winter.
 
Quote from nazzdack:

Focus instead on weather sensitive markets, i.e. grains during the summer & livestock, orange juice and natural gas during the winter.
More...

Exactly.

I will predict that despite the current bearish fundamentals in the Beans, you will see the $10.80 highs of early 2004 taken out next Spring . . . and the spirited chant of "Beans in The Teens!!!" coming to a quote screen near you in the near future.

This will be the Trade of 2006.
:cool:
 
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