Average Daily volatility on CBOT products

Discussion in 'Ag Futures' started by TraDaToR, Mar 21, 2007.

  1. TraDaToR



    It seems that on CBOT electronic contracts, the one that offer the most volatility is soybeans( considering only the range in ticks not in $ ). The most ranging seems to be Rough Rice.

    In fact , I obtain S > C > W > O > RR on a short period just observing it. Is it right?

    Where do you place Soybean meal and oil?

    Is this classification stable or does it change sometimes?

  2. This will widely vary with fundamentals. Wheat last October was *insane*. Soybeans is likely more volatile (at the moment) due to:
    1) We have a LOT of them in storage
    2) If we don't pay up, no one will plant them

    So, we have a commodity no one wants, but has to pay for anyway. How much is that worth? Active debate = volatility.
  3. TraDaToR


    OK. Interesting to know what is driving it.

    I really have a lot to learn about fundamentals. I only traded technical trading systems until now, and I find ag relationships really interesting and powerful( especially spreads ).

  4. I no longer trade outright futures at all, only spreads.

    I love commodities because fundamentals mean something. I've ignored every technical signal to get long cotton that I normally would take because I know we have a lot of Cotton, no one is using Cotton, and no one is exporting Cotton. :)

    Pick up a copy of the CRB yearbook. There's *great* stuff in there on fundamentals to get started.