Tips On Trading Corn Futures In The Commodities Market
Corn is grown throughout the United States in April and May and then harvested in October and November. As a result, this nation is not just the top producer in the world, but likewise the leading exporter. For this reason when following the corn futures prices it is also essential to closely examine the US crops.
There are several ways to determine the best options for trading on this futures market:
Future Crops: The initial major report at the start of growing season will summarize the amount and the types of crops farmers are expected to plant during the upcoming season.
Monthly Production: This report is unveiled about the tenth of every month and will give an up-to-date estimation for the demand and supply of corn.
Grain Stocks: This will supply information about the existing supply of corn and various other grains throughout the United States and the rest of the world.
Some tips to trading on the futures market
The summer time will be the most volatile and active time for trading. Keep an eye on the weather conditions throughout the Midwest for indication of excessive flooding or heat.
The monthly reports for crops will be a huge market mover as this evaluates the supply and demand.
Keep track of how fast the crops are planted in April and May, since the later plant dates might be smaller and so the commodity will go for higher price.
Avoid purchasing costly options whenever the market is very unstable.
Hedgers will make use of the corn futures marketplace in conjunction with spot markets, which is actually the market which displays the real cost of corn at any given time, to make sure that regardless of how the market shifts they will not lose funds. If you take opposite positions for any of these markets, any loss that you might suffer on any of the market will be balanced out by the profits on the other and so on. Therefore, the money generated is based totally on the actual commodity.
