Basic Grains strategy


Junior member
Hi everyone...

It's been a while since I have posted on here, so ifigured I'd start a new thread on something i need some help with.

I just started trading grains and need to know a few basics please. What numbers do you look at?

I mean other than the obvious interest rate decisions and Non farm payrolls.

For example: when trading interest rates you look at NFP, ISM, GDP, CPI and other minor ones like jobless claims, industrial output, etc...

What are the major movers for the grains? Are all the daily pubblications on corn and wheat and stuff important? or being daily are they minor?

Thanks everybody
The best way to trade grains IMO is to get in touch with a farmer. You need to know the local cash price at your local elevator and know the "basis". You also need to know the cash price behaviour and the futures price behaviour over last several years. You need to determine for your self if you belive or not the efficient market hypothesis. You need to know the non speculative uses of the futures market for grains and then the speculative uses so you can form the best trading strategy. You need to know how whether affects the commodity, growing season, market reports. Contact University of Iowa agric department. cheers!
Are you in the US? i'll mail you a trading calendar with all of the basic grain reports in it. There are weekly reports that matter, but with grains the big ones are the monthly and quarterly USDA reports.
Like most of the modern world, grains have taken on a global scope with multiple growing seasons around the globe. Consequently, traders also need to be aware of weather patterns and soil moisture levels around the world to fully grasp how the supply picture changes. "With South America becoming such a major soybean and corn producer, traders not only have to watch what is happening here in the spring and summer, but also what is happening there in the fall and winter (their growing season)," says Mike Zarembski, senior commodity analyst at optionsXpress

I suggest you do the following if you want to be serious about grain trading:

-Read the product description of the contract you trade to know what you are trading (available on the exchange website)
-Get familiar with the exporting and importing countries and follow the trends in the global trade
-Get familiar with the crop calendar (hence the contracts maturities)
-Get familiar with the concepts of cash basis, crop yields, carry-over, freight costs
-Watch the USDA calendar
-Ask me if you have any question

Good luck