introduction to grain futures trading

Discussion in 'Ag Futures' started by clearpicks, Apr 20, 2007.

  1. Can someone tell me where I can find some good introduction (books or websites) to grain futures trading, such as what factors affect the movement of grain futures, seasonal pattern, correlation between ZC, ZS and ZW, etc.? Is there any website where I can check the most recent news moving grain markets? Help is greatly appreciated.
  2. JayS


  3. JayS


  4. xiaodre


    Here's something interesting from CBOT. Got it in an email:

    CBOT mini-sized Agricultural Futures

    mini-sized ― MAXIMUM BENEFITS
    Coming to e-cbot® on May 14 Trade Date


    Trading Hours:
    e-cbot: 6:30 p.m. to 6:00 a.m.* Sunday through Friday (Chicago time)
    Open Auction: 9:30 a.m. to 1:45 p.m. Monday through Friday (Chicago time)

    Contract Size:
    1,000 bushel contracts
    Metric ton equivalents: Corn 25 mt, Soybeans 27 mt, Wheat 27 mt

    Pricing Unit (U.S. currency):
    Cents per bushels

    Tick Size (minimum price fluctuation):
    1/8 cent per bushel ($1.25/contract)

    Directed Fungibility Ratio:
    5 mini-sized contracts to 1 full-sized contract

    For more information:
    Call a CBOT Product Manager at 312-341-7955

    Directed Fungibility
    CBOT mini-sized Corn futures specifications
    CBOT mini-sized Soybean futures specifications
    CBOT mini-sized Wheat futures specifications
    Press Release

    *Staggered opening times on e-cbot:
    CBOT mini-sized Corn at 6:30 p.m.
    CBOT mini-sized Soybeans at 6:31 p.m
    CBOT mini-sized Wheat at 6:32 p.m.
  5. dmcw

    dmcw Global Futures

  6. bunkinc


    Why do they even bother? It will be just another dead contract, and it will take liquidity away from fullsize... besides, it's too small. What a waste.
  7. pacific


    Are contracts on the open auction and electronics interchangeable ? That is, can i open a position on one and close the position on the other ?
  8. pacific



    Good word, fungible.
  9. Normally I'd agree with you but I'll make a contrary argument.

    a. For years Chicago's Mid America Exchange traded 1000 bushel contracts with success. A slew of great traders came from those pits including Rich Dennis.

    b. 5000 bushels, particularly in Soybeans, is a large hedge for smaller farms. Not to mention what if a farmer has 7000 bushels to hedge? A full size 1 lot is too little, a 2 lot is too much.

    c. I envision a time in the near future when grain prices will be so high and volatility (at least in price if not in % terms) so great that many retail traders will be sized out 5000 bushel contracts in beans.
    #10     Apr 22, 2007