Hello, For anyone who has experience trading Soybeans and/or Soybean meal intraday: A. What are the advantages and disadvantages of trading Soybeans and Soybean meal intraday? B. How well do these products trend? C. What months are best for trading? Thanks
1) The pit session trading hours are shorter compared to other markets. Because of that, you have to be able to act "quicker" with ZS and ZM. Limit-moves in the Summer can be annoying. Grains have "better defined" fundamentals compared to other markets. 2) Sometimes they trend, sometimes they don't. 3) The most active months will be the "front" and "new crop". Avoid the "swing" months if you can help it. :eek:
Is there a particular reason that you insist on trading intraday ? There might be a more reliable and less capital-intensive way for you. I have clients who do well swing trading ZS and ZM calendar spreads and butterfly spreads. The spreads trend and model and "behave" very well. The initial CME SPAN margin requirement to carry a Soybean Meal 2014 March-May-July 1-2-1 Butterfly spread overnight is $608. I have many clients who came to me as intraday traders and who now find that position or swing trading spreads to be a much better trading experience for them. Two of my clients owned full CBOT memberships and traded on the grain floor.
soybean and meal are made for spring and summer weather casino, if you can't read weather maps, better not to bet heavily on them in the NA and SA summer