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Commodity Futures Price
Commodity futures price quotes are available for food and fiber, grain and oil seed, interest rates, cattle and hogs, metals, and oil and energy futures. No matter whether one is trading corn futures, oil futures, copper futures, gold futures, natural gas futures, or silver futures knowing the current commodity futures price is essential for profitable futures trading in commodities. One can find the current price on futures for any given commodity by looking online at the Chicago Mercantile Exchange, (CME), the Chicago Board of Trade (CBOT), the New York Mercantile Exchange (NYMEX), and the commodity exchange, COMEX. An excellent means of learning about commodity futures pricing and commodities markets is commodity and futures training.
Commodity futures contracts are agreements between two parties for the sale of a given quantity of a given commodity on a specified future date. Futures contracts can be for a few months or for years. For example, in May the COMEX trades corn futures contracts for delivery in May, July, September, and December of the same year. It also trades contracts for delivery in March, May, July, September, and December of each of the next two years. Then it trades contracts for July and December three years hence. Depending upon crop conditions, market demand, and factors such as the price of oil and the amount of corn being diverted to ethanol production the commodity futures price of corn will vary above or below the current spot price.
A commodities trading in futures should be distinguished from options trading in commodity futures. A futures contract confers the obligation to buy or sell the commodity in question if the contract is held until expiration. In fact, many traders will exit their position in the days prior to expiration. However, producers and buyers who are hedging commodities will, in fact, deliver or take delivery of the commodity in question. On the other hand buying calls and buying puts in the commodity futures market confers the option to buy or sell but not the obligation. Selling calls and selling puts, of course, confers the obligation if the buyer decides to exercise the option. The advantage of buying calls or puts is that the trader will only lose his premium if the commodity price does not move as expected.
2. Commodity futures price quotes are
available for food and fiber, grain and oil
seed, interest rates, cattle and
hogs, metals, and oil and energy futures.
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3. No matter whether one is trading corn
futures, oil futures, copper futures, gold
futures, natural gas futures, or silver
futures knowing the current commodity
futures price is essential for profitable
futures trading in commodities.
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4. One can find the current price on futures
for any given commodity by looking
online at the Chicago Mercantile
Exchange, (CME), the Chicago Board of
Trade (CBOT), the New York Mercantile
Exchange (NYMEX), and the commodity
exchange, COMEX.
www.CandlestickForums.com
5. An excellent means of learning about
commodity futures pricing and
commodities markets is commodity and
futures training.
www.CandlestickForums.com
6. Commodity futures contracts are
agreements between two parties for the
sale of a given quantity of a given
commodity on a specified future date.
www.CandlestickForums.com
7. Futures contracts can be for a few
months or for years. For example, in
May the COMEX trades corn futures
contracts for delivery in
May, July, September, and December of
the same year.
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8. It also trades contracts for delivery in
March, May, July, September, and
December of each of the next two years.
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9. Then it trades contracts for July and
December three years hence.
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10. Depending upon crop conditions, market
demand, and factors such as the price of
oil and the amount of corn being
diverted to ethanol production the
commodity futures price of corn will
vary above or below the current spot
price.
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11. A commodities trading in futures should
be distinguished from options trading in
commodity futures.
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12. A futures contract confers the obligation
to buy or sell the commodity in question
if the contract is held until expiration. In
fact, many traders will exit their position
in the days prior to expiration.
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13. However, producers and buyers who are
hedging commodities will, in fact, deliver
or take delivery of the commodity in
question.
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14. On the other hand buying calls and
buying puts in the commodity futures
market confers the option to buy or sell
but not the obligation.
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15. Selling calls and selling puts, of
course, confers the obligation if the
buyer decides to exercise the option.
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16. The advantage of buying calls or puts is
that the trader will only lose his
premium if the commodity price does
not move as expected.
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17. As with all markets price movements can
be predicted with technical analysis
tools such as Candlestick charting and
Candlestick pattern formations.
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18. Although fundamental commodity
analysis will tell the trader the eventual
commodity futures price he or she will
need to follow the example of rice
traders in ancient Japan in letting market
history predict market future.
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19. Because history does, in fact, repeat
itself in commodity market price
patterns it is possible to predict that a
market trend will continue or that
market reversal will occur.
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20. The trader knowledgeable in Candlestick
trading tactics will typically be one up on
the rest of the market in profiting from
commodity futures price movement.
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21. Letting the market tell the trader what
the market will do is still an adage that
works after hundreds of years of
commodity trading.
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