http://futures.tradingcharts.com/
http://futuresource.quote.com/quotes/index.jsp
http://www.cbot.com
http://www.prophet.net/quotes/futureswatch.jsp
http://www.barchart.com
Wednesday, February 20, 2008
Players Involved in Commodities Trading
There are three different types of players in the commodity markets:
Commercials: The entities involved in the production, processing or merchandising of a commodity. For example, both the corn farmer and Kellogg’s from the example above are commercials. Commercials account for most of the trading in commodity markets.
Large Speculators: A group of investors that pool their money together to reduce risk and increase gain. Like mutual funds in the stock market, large speculators have money managers that make investment decisions for the investors as a whole.
Small Speculators: Individual commodity traders who trade on their own accounts or through a commodity broker. Both small and large speculators are known for their ability to shake up the commodities market.
Commercials: The entities involved in the production, processing or merchandising of a commodity. For example, both the corn farmer and Kellogg’s from the example above are commercials. Commercials account for most of the trading in commodity markets.
Large Speculators: A group of investors that pool their money together to reduce risk and increase gain. Like mutual funds in the stock market, large speculators have money managers that make investment decisions for the investors as a whole.
Small Speculators: Individual commodity traders who trade on their own accounts or through a commodity broker. Both small and large speculators are known for their ability to shake up the commodities market.
How do Futures Work?
Futures are standardized contracts among buyers and sellers of commodities that specify the amount of a commodity, grade / quality and delivery location. Commodity trading with futures contracts takes place at a futures exchange and, like the stock market, is entirely anonymous.
For example: the buyer might be an end-user like Kellogg’s. They need to buy corn to make cereal. The seller would most likely be a farmer, who needs to sell his corn crop. They create a contract of December Corn futures at the current market price. A contract of corn at the CBOT consists of 5,000 bushels. Therefore, the farmer would have to deliver 5,000 bushels of corn to Kellogg’s in December at a designated location.
For example: the buyer might be an end-user like Kellogg’s. They need to buy corn to make cereal. The seller would most likely be a farmer, who needs to sell his corn crop. They create a contract of December Corn futures at the current market price. A contract of corn at the CBOT consists of 5,000 bushels. Therefore, the farmer would have to deliver 5,000 bushels of corn to Kellogg’s in December at a designated location.
What are Commodities?
The terms “commodities” and “futures” are often used to describe commodity trading or futures trading. You can think of them as generic terms to describe the markets. It is similar to the way “stocks” and “equities” are used when investors talk about the stock market. To be more specific, this is what they really mean: Commodities are the actual physical goods like corn, soybeans, gold, crude oil, etc. Futures are contracts of commodities that are traded at a futures exchange like the Chicago Board of Trade (CBOT). Futures contracts have expanded beyond just commodities; now there are futures contracts on financial markets like the S&P 500, t-notes, currencies and many others.
Futures Contract: December 2007 Corn, which is a contract of 5,000 bushels of corn that trades at the Chicago Board of Trade with a contract expiring in December 2007.
Futures Contract: December 2007 Corn, which is a contract of 5,000 bushels of corn that trades at the Chicago Board of Trade with a contract expiring in December 2007.
Monday, February 4, 2008
Wheat Market Recap Report for 2/4/2008
2/4/2008
May Wheat finished up 29 at 989 1/2, 1 off the high and 29 up from the low. July Wheat closed up 30 at 904 1/2. This was 29 1/2 up from the low and equal to the high.
The March Minneapolis wheat contract again pushed to limit up near the close pulling nearby contracts up in both Chicago and KC. Those contracts also closed limit up. Fund buying occurred during the session on fair volume. Export demand and the scramble for tight stocks in Minneapolis were also contributing factors according to floor traders as was the sharp mid-session rally in crude oil. March, May, July and December contracts in KC all made new contract high closes with March KC closing at 1020 1/4. March wheat in Chicago closed at 973. This week's export inspections for wheat were 16.52 million bushels, down from last week's 24.45 million and below the low end of trade expectations. An average of 16.7 million is needed each week to reach the USDA projection. Cumulative shipments have reached 75.4% of the USDA export forecast for the season as compared with the 5-year average for this time of the year at 66.2% exported. Canada's federal agriculture department forecast a 25% rise in next year's total wheat production today. Weather continues to be favorable to crop development in the US with the exception of a continued moisture deficit in Texas and adjacent wheat growing areas.
May Oats closed up 11 3/4 at 344 3/4. This was 3 3/4 up from the low and equal to the high.
May Wheat finished up 29 at 989 1/2, 1 off the high and 29 up from the low. July Wheat closed up 30 at 904 1/2. This was 29 1/2 up from the low and equal to the high.
The March Minneapolis wheat contract again pushed to limit up near the close pulling nearby contracts up in both Chicago and KC. Those contracts also closed limit up. Fund buying occurred during the session on fair volume. Export demand and the scramble for tight stocks in Minneapolis were also contributing factors according to floor traders as was the sharp mid-session rally in crude oil. March, May, July and December contracts in KC all made new contract high closes with March KC closing at 1020 1/4. March wheat in Chicago closed at 973. This week's export inspections for wheat were 16.52 million bushels, down from last week's 24.45 million and below the low end of trade expectations. An average of 16.7 million is needed each week to reach the USDA projection. Cumulative shipments have reached 75.4% of the USDA export forecast for the season as compared with the 5-year average for this time of the year at 66.2% exported. Canada's federal agriculture department forecast a 25% rise in next year's total wheat production today. Weather continues to be favorable to crop development in the US with the exception of a continued moisture deficit in Texas and adjacent wheat growing areas.
May Oats closed up 11 3/4 at 344 3/4. This was 3 3/4 up from the low and equal to the high.
Corn Market Recap for 2/4/2008
2/4/2008
May Corn finished up 9 1/4 at 522 1/2, 1/2 off the high and 9 1/4 up from the low. December Corn closed up 14 at 533. This was 14 up from the low and 1/2 off the high.
Corn rallied today on continued strong export demand along with higher wheat and soybeans and closed near the highs of the day.
Mexico's Energy Department said today that it would start to allow companies to produce both ethanol and bio-diesel fuels in order to reduce exhaust emissions and to provide a boost in income to impoverished farmers.
The Buenos Aires Grains Exchange reported on Friday that this year's corn harvest may be only 20.5 million tons due to hot and dry conditions. The crop also suffered from the fairly severe frosts that occurred there last November. Those frosts were thought to have damaged wheat and this triggered a halt in grain export registrations. Damage to wheat proved to be negligible and wheat registrations have since reopened. Export registrations for corn are set to reopen shortly. Basis levels at the Gulf were steady to firm today on good demand. Traders expected fund buying today, and funds were buyers in most markets during the session. Export inspections dipped sharply this week to 47.74 million bushels compared to 61.15 million the week before. This was in line with trade expectations. A weekly average of 45.43 million bushels is needed to reach the USDA projection. The budget sent to Congress by the Bush Administration left the 54-cent US ethanol import tax unchanged, so far.
May Rice finished down 0.1 at 15.4, 0.08 off the high and 0.01 up from the low.
May Corn finished up 9 1/4 at 522 1/2, 1/2 off the high and 9 1/4 up from the low. December Corn closed up 14 at 533. This was 14 up from the low and 1/2 off the high.
Corn rallied today on continued strong export demand along with higher wheat and soybeans and closed near the highs of the day.
Mexico's Energy Department said today that it would start to allow companies to produce both ethanol and bio-diesel fuels in order to reduce exhaust emissions and to provide a boost in income to impoverished farmers.
The Buenos Aires Grains Exchange reported on Friday that this year's corn harvest may be only 20.5 million tons due to hot and dry conditions. The crop also suffered from the fairly severe frosts that occurred there last November. Those frosts were thought to have damaged wheat and this triggered a halt in grain export registrations. Damage to wheat proved to be negligible and wheat registrations have since reopened. Export registrations for corn are set to reopen shortly. Basis levels at the Gulf were steady to firm today on good demand. Traders expected fund buying today, and funds were buyers in most markets during the session. Export inspections dipped sharply this week to 47.74 million bushels compared to 61.15 million the week before. This was in line with trade expectations. A weekly average of 45.43 million bushels is needed to reach the USDA projection. The budget sent to Congress by the Bush Administration left the 54-cent US ethanol import tax unchanged, so far.
May Rice finished down 0.1 at 15.4, 0.08 off the high and 0.01 up from the low.
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