I did a google search and looked at the first three links.
Agriculture.com:
This showed the prices that show up in the ThinkorSwim client, so that's not it.
MGEX.com:
I could look at information on the wheat sold in several different locations, which is not what I'm looking for. Then again, I apparently don't understand how any of this works. I looked at some of the data on this site and am not sure what I'm looking at or if it is helpful at all.
Would it not make sense to have an average sale price for all wheat per bushel? That would be the average price at which, say, a December contract is going to close at.
Farmassist.com:
It displays the wheat prices from various locations, but does not say which price corresponds to which contract. Again, I am not sure what to make of that data.
If anyone knows anything about how this all works, I'm quite curious and very baffled. Not only do I not understand, but I'm not sure what questions to ask or where to look to find the explanations I need.
First,there are multiple grain producers , selling their crops at different times in the futures market. Second, one producer doesn't necessarily sell all his wheat at one expiry and doesn't necessarily sell everything based on a forward contract( but on the cash market too ).It's a market ... Multiple parties trading at multiple times for multiple reasons...
If the trade actually took place in the futures market, be it in the pit or electronically, the transaction will get printed. It should show in the T&S window.
Anyway, this sounds more like options than futures. Technically, I can give you a small premium (call it a goodwill gesture) in advance to pay $4 per bushel in June, even if wheat might trade above $4. You keep the premium no matter what and I have the right to either buy or simply walk away if I choose. This is options.
BTW how do you know $4 will be the settled price for June contract?
$4 is a purely hypothetical price. I'm just trying to understand how the market works.
As for options, I haven't read anything about Options. All these questions are coming from reading about futures. The articles I read were from "Futures Fundamentals" article on Investopedia.
First,there are multiple grain producers , trading at different times in the futures market. One producer doesn't necessarily sell all his wheat at one expiry and doesn't necessarily sell everything based on a forward contract.It's a market ... Multiple parties trading at multiple times for multiple reasons...
Okay, say we have grain producers A, B, and C. They are looking to make contracts for December 2013 Wheat for a certain portion of their grain.
A sets his contract at $5 per bushel, B at $6, and C at $7. So, the average price between the producers is $6 per bushel.
Is that more realistic? Or would a single grain producer set hundreds or thousands of contracts at various prices for the December '13 contract? Even so, one could average those prices and still arrive at the "Average Contract Expiration Price". Wouldn't such a price be immensely useful, especially as the expiration date of a contract approaches?
