Lumber, Sugar & OJ are exihibiting topping behaviour. make up your minds if you believe this story line. http://www.ft.com/cms/s/0/be204aa2-304f-11e0-8d80-00144feabdc0.html#axzz1DJV5YEEv
The beans contract is twice the size of the corn, both 5k bushels. I have a hard time believing the beans are showing smaller ranges than the corn over any extended period of time.
Although I won't object to anyone making calls, this thread is more about exchanging fresh ideas that would enhance knowledge/skill about commodities in general. As I already said, apart from prices, I know nearly nothing about ags. So i'm posting charts to invite comments and other useful information that I should know.
My previous reply was more about performance than the intraday range, so here's another chart that will show the actual daily range between wheat and soybean. I tried to pick the days with the largest trading range that were proportionately reflected in both instruments. Note the bottom indicator is the daily range (eg. high - low) shown in percentage. <center> <img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=3084708" height="500" width="700"> Click to enlarge <center>
schizo: Have you read the threads below? http://www.elitetrader.com/vb/showthread.php?s=&threadid=208975 http://www.elitetrader.com/vb/showthread.php?s=&threadid=208068 http://www.elitetrader.com/vb/showthread.php?s=&threadid=211431 These threads are titled 'spreads', but there is also useful information about flat price grain trading in each thread. What type of trading are you looking to do?
I did haphazardly browsed through the "Wheat Spread" thread. Now that you mentioned it, perhaps I should read it with a more critical eye. Currently, I'm mostly day-trading the front-month contract on a straight-up basis: directional. While this may sound shortsighted, I believe everything is already priced in. But I'm slowly coming to the realization that the underlying fundamentals might carry a larger clout in the Agriculture department. What are some of the important news, including government reports (other than the typical USDA), should I look out for and when are they released during the week/month?
Sugar closed below the 3-month trendline today, effectively reversing its nearly 9 months advance. We shall see if this is a genuine reversal or just another pullback.
If this thread is meant for exchanging ideas and information, please allow me to ask this question: Why is Oats so thin? Is there any chance this might change?
Frankly, I dunno. But I suppose the main reason is lack of demand since it isn't as widely consumed as other products. For instance, corn is currently being used in ethanol production. Wheat, being the most favorite stable in the developed nations, is also used to feed livestock. However, soybeans, by far, is the major ingredient in livestock feed.