I am watching December 09 cbot wheat trading at around $1.00 over cash market for that particular wheat. Normally as you get closer to delivery they start to come together. Many times the grain futures trade at 50 cent premium to cash. Demand is poor for wheat, they are 90 percent planted and at these prices there are not many buyers. Is it foolish to consider fundamentals and just be technical.
trader_dante
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Hey Savcty, I have been trading Wheat successfully for a couple of years with almost no regard to fundamentals.
What an interesting session today, by the way!
574.50 is the pivot to watch.
jaspertrademaster
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Almost no regard?
There isnt any need to know funamentals to trade grains as long as you are trading solely for the day IMO! However, this year is looking very interesting from the fundamental perspective. India is net exporter of wheat for the first year EVER!
Brazil expects record harvest and Australia has had most rain in approx 15 years! Lots of interesting dynamics this year should add a bit of volatility to the mkt.
Trading on the basis of fundies means carrying open exposed positions overnight. You have to have cash and stupidity, or have the stock for delivery to take that kind of risk. Plus of course, someone else always gets a look at those key reports before you do.
Trade on auto
Brazil expects record harvest and Australia has had most rain in approx 15 years! Lots of interesting dynamics this year should add a bit of volatility to the mkt.
Trading on the basis of fundies means carrying open exposed positions overnight. You have to have cash and stupidity, or have the stock for delivery to take that kind of risk. Plus of course, someone else always gets a look at those key reports before you do.
Trade on auto
