wheat spreads

Discussion in 'Commodity Futures' started by local, Oct 22, 2010.

  1. kanellop

    kanellop

    Hello Again.

    I am interesting for Platform/s that have ability for Inter-Commodity Spreads.

    And especially for Wheat Spreads in combinations between the U.S.A Exchanges CBOT, KCBT and MGEX.

    Calendar Spreads i respect them but i do not trade them.

    Kind Regards,

    George Kanellopoulos.
     
    #71     May 19, 2011
  2. emg

    emg

    ninja trader does not do spread. stick to CQG. cqg is the best platform
     
    #72     May 19, 2011
  3. emg

    emg

    u can try X-trader Trading Technologies

    http://www.tradingtechnologies.com/
     
    #73     May 19, 2011
  4. local

    local

    You can trade some intercommodity spreads with CTS (wheat/corn) but is illiquid. Don't think it trades what you are looking for. One thing that I like about CTS is it gives you volumes at the various levels.

    Regards, local
     
    #74     May 19, 2011
  5. kanellop

    kanellop

    Hello Again.

    The CQG Spreader have very big USD Monthly Cost at least for me.

    1400 USD per Month without Charts, stand alone.

    By the Way do you have any Idea how much is the USD Monthly Cost for the:

    X_Trader of Trading Technologies ?

    Kind Regards,

    George Kanellopoulos.
     
    #75     May 19, 2011
  6. emg

    emg

    well, same price as cqg. if the price is too high, u should go with what local has, the CTS
     
    #76     May 19, 2011
  7. kanellop

    kanellop

    Good Morning to All.

    I want to say that i have about two,

    above than mysterious Questions,

    especially for local.

    1) Do you have provide ever liquidity to any Grain Exchange/s,

    with some Benefits to you for that reason ?

    For example here: http://www.mgex.com/ ,

    in the front Page say that exist the:

    MGEX Liquidity Provider Program.

    2) Now, suppose that you did/do that.

    In that Case,

    how hedge from your Side the Open Positions that generate it from your Activity into the Grain Exchange/s ?

    Respectfully Yours,

    George Kanellopoulos.
     
    #77     May 23, 2011
  8. local

    local

    George,

    I believe you are asking if I have ever traded as a lquidity provider. The short answer is no, I have not. When I started trading as a local, there were no liquidity provider programs so it wasn't an option. As a local, my role evolved from that of a trader scalping the market to a market maker, a course that many locals took.

    I have looked at the liquidity provider programs, but personally don't think the risks are worth the rewards. I would rather just trade my own account.

    Regards, local
     
    #78     May 23, 2011
  9. kanellop

    kanellop

    Hello Again local.

    Thank you very much for your Comments.

    Always, it is very big pleasure for me to read your Comments...

    Now, i want to tell you that i asked you all these because in my Mind had,

    the Minneapolis Grain Exchange (MGEX) Wheat Indices...

    These Wheat Indices had make me many times to wonder,

    why does not have any Volume...

    Respectfully Yours,

    George Kanellopoulos.
     
    #79     May 23, 2011
  10. local

    local

    The MGEX wheat indices are being promoted as a tool for commercials to manage basis risk. I have traded cash as a commercial in the past and elevator companies allowed end users and producers to lock in basis levels. Thus, I don't see the advantage of using futures contracts for a service that already exists in the industry. It could be that specualtors can participate in speculating on basis levels, but in general, speculators are not well versed in basis risk.

    One feature of the indices that I don't care for is that it is a cash settled contract. I make a practise of not trading cash settled contracts because they tend to be easier to manipulate than a contract settled thru physical delivery. I.E. A small number of commercials are responsible for determining the cash settlement prices and this can pose a conflict of interest if they should be carrying a futures position. Just my personal opinion but I do not think cash settled contracts are going to attract much interest in industries experiencing consolidation. Too much influence on price by too few players.

    Regards, local
     
    #80     May 23, 2011