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.
Good place to start. They have a ton of education material. http://www.cbot.com/cbot/pub/page/0,3181,963,00.html
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 KEY FEATURES 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 Links: 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.
You might want to check out the "The Complete Idiot's Guide to Options and Futures". I haven't read it, but I've heard good things. And I came across this page yesterday which I thought had some really good, basic info: http://books.google.com/books?vid=I...res&sig=q-AsbuCCYtJ0duJeJJoHQWFUvgY#PPA155,M1 Best regards,
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.
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 ?
Yes, they are fungible. http://www.financialnews-us.com/index.cfm?page=ustradingtechnology&contentid=531054
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.