Grain Futures News & Information on Cannon Trading
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Grain Futures

Category Archives: Grain Futures

Different grains are traded on the Index, as commodities. Wheat, corn, soybeans, canola and soybean meal are just a few examples. They can be either a short-hedge or a long-hedge. One of the most traded grain futures is corn.

Basically, buying or selling these forms of futures enables the buyers and sellers to lock in prices of the specified grain today for the items that are to be delivered in the future. Therefore, all those who are interested in grains futures must track the performance of the grain on the demand and supply graph as well as its performance on the index. Though it is not tough to understand grains futures, the calculation of risk and returns is something that an average person may leave for an expert to do.

We at Cannon Trading are there to help you to not just understand the markets well, but to act as your personal advisors when it comes to trading futures. And, that’s something that applies for grain futures as well. However, information and awareness come before anything else. That is why, we want you to read through all of these blogs and articles carefully before you decide whether you want to trade grain futures or not.


Coffee Outlook, Beige Book and Crude Oil Numbers + Levels for April 17th

April 16th, 2024 Filed under Charts & Indicators, Commodity Brokers, Commodity Trading, Day Trading, Future Trading News, Futures Broker, Futures Trading, Grain Futures, Indices | Comment (0)

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Powell spoke and stock index futures traded in a volatile, zig zag type of trading most of the day unable to break one way or the other and closing near the unchange.

On the daily chart, both the SP and NASDAQ are noticing more pressure to the downside.

One of the keys for day Traders is to try and establish early on what type of day trading environment they are in.

Is this going to be a trend day it is this going to be a choppy low volatility trading day? is the day unfolding has a potential to be a volatile two-sided type of trading day?

Being aware of the top of trading day that is unfolding in front of you can help you decide which strategies to apply on that trading day.

Knowing what reports are coming out. the general direction of the long term charts can help you.

Different strategies will work better in different type of trading environments.

On a different note, softs, i.e. Cocoa, cotton, Coffee , Sugar, OJ are experiencing much higher volatility than historical norms. Cocoa just dropped close to 8% today after trading above the historical mark of $100 per metric ton.

below you will see a daily chart of Coffee futures and possible future direction.

 

 

 

 

Daily Levels for April 17th, 2024

Economic Reports
provided by: ForexFactory.com
All times are Eastern Time ( New York)

Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker at 1-800-454-9572.

Explore trading methods. Register Here

* This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.


How Important is Hedging for Farmers? + Levels for April 16th

April 15th, 2024 Filed under Charts & Indicators, Commodity Brokers, Commodity Trading, Day Trading, Future Trading News, Futures Broker, Futures Trading, Grain Futures | Comment (0)

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This week we will see a number of fed speakers,

Tomorrow

Live @ 12:15CDT Link to Discussion With Jerome Powell we are providing this link for those that will watch the market and listen simultaneously

 

A bit of a departure from the usual Monday blog bites. The planting season in the northern hemisphere is under way so a quick review of the importance of Hedging follows:

How Important is Hedging for Farmers?

For farmers, especially those involved in producing commodities like wheat, corn, soybeans, and livestock, the prices of these products can fluctuate significantly due to various factors such as weather conditions, global demand, geopolitical events, and market speculation. These fluctuations can directly impact a farmer’s profitability and financial stability. Here’s why hedging is so important:

  • Price Stability: Futures trading allows farmers to lock in prices for their produce or livestock at predetermined levels, providing them with a sense of stability and predictability in their revenue streams.
  • Risk Management: By hedging, farmers can protect themselves against adverse price movements. For example, if a farmer expects the price of corn to decrease before their harvest, they can take a short position in corn futures to offset potential losses.
  • Budgeting and Planning: Knowing the approximate revenue from their crops or livestock enables farmers to budget effectively, plan future investments, and manage expenses with more confidence.
  • Access to Capital: Having predictable revenue streams through hedging can make it easier for farmers to secure financing from lenders as they demonstrate a more stable financial outlook.
  • Competitive Advantage: Farmers who hedge can often compete more effectively in the market by offering consistent pricing to buyers, thereby securing long-term contracts and relationships.
  • Futures trading serves as a powerful tool for farmers to manage price risk and ensure a more stable financial outlook. By hedging their crops like wheat, corn, soybeans, and livestock, farmers can mitigate the impact of market volatility, plan their budgets effectively, and compete more confidently in the agricultural sector. Understanding and implementing various hedging strategies empower farmers to navigate unpredictable market conditions while safeguarding their profitability.

 

 

 

Daily Levels for April 16th, 2024

Economic Reports
provided by: ForexFactory.com
All times are Eastern Time ( New York)

Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker at 1-800-454-9572.

Explore trading methods. Register Here

* This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.


Weekly Newsletter: Understanding Price Banding, May Bean Oil Outlook and Automated Gold System

March 15th, 2024 Filed under Charts & Indicators, Commodity Brokers, Commodity Trading, Day Trading, Energy Futures, Future Trading News, Futures Broker, Futures Trading, Gold Futures, Grain Futures, Weekly Newsletter | Comment (0)

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Cannon Futures Weekly Letter Issue # 1186

In this issue:
  •  Important Notices – FOMC Next Week
  • Trading Resource of the Week – Understanding Price Limits and Banding
  • Hot Market of the Week – May Bean Oil
  • Broker’s Trading System of the Week – Gold Swing System
  • Trading Levels for Next Week
  • Trading Reports for Next Week

 

Important Notices –

  • FOMC Meeting next week. Announcement on Wednesday.
  • Light data most of the week. Housing sales
  • Very few earnings
  • June is front month for indices, currencies and financials.: M = June
  • USA is on daylight savings time – most international countries have NOT changed yet.

 

 

Trading Resource of the Week : What are Price Limits and Price Banding? by CMEgroup.com

As a trader, you want to know that there are mechanisms in place to ensure an orderly market. A regulated marketplace like CME Group provides this order by setting price limits and price banding.
Price Limits
Price limits are the maximum price range permitted for a futures contract in each trading session. These price limits are measured in ticks and vary from product to product. When markets hit the price limit, different actions occur depending on the product being traded. Some markets may temporarily halt until price limits can be expanded or trading may be stopped for the day based on regulatory rules. Different futures contracts will have different price limit rules; i.e. Equity Index futures have different rules than Agricultural futures.
Example
Equity Indexes futures have a three level expansion: 7%, 13% and 20% to the downside, and a 7% limit up and down in overnight trading.
When price reaches any of those levels the market will go limit up or limit down.
Calculating Price Limits
Price limits are re-calculated daily and remain in effect for all trading days except in certain physically-deliverable markets, where price limits are lifted prior to expiration so that futures prices are not prevented from converging on prices for the underlying commodity.
Typically, Agricultural futures will go limit up or down most often compared to Equity Index futures which very rarely if ever go limit up or down. When trading a specific product, it is important to be aware of price limits and the mechanisms that occur when limits are hit. Traders also know that it is possible for limits to be reached for more than one session in a row, however the expansion of limit thresholds over the last few years have reduced this occurrence.
Price Banding
Price banding is a similar mechanism which subjects all orders to price validation and rejects orders outside the given band to maintain orderly markets. Bands are calculated dynamically for each product based on the last price, plus or minus a fixed band value. Thus, if markets quickly move in one direction, the price bands dynamically adjust to accommodate new trading ranges.
Conclusion
The rules for each market can be found on cmegroup.com.
It is important to note that traders can place trades outside the daily price limits. These trades will be executed when price limits and price bands move within the specified range. So, traders still have the ability to place good-til-canceled or good-til-date orders inside and outside daily price limits.
In the last few years there are fewer and fewer times that markets will actually go limit up or down, but it is important to be aware of these pricing rules when you trade.

 

 

  • Hot Market of the Week – May Bean Oil
Hot market of the week is provided by QT Market Center, A Swiss army knife charting package that’s not just for Hedgers, Cooperatives and Farmers alike but also for Spread traders, Swing traders and shorter time frame application for intraday traders with a unique proprietary indicator that can be applied to your specific trading needs.
May Bean Oil
The rally in May soybean oil accelerated to its second upside PriceCount objective and now the chart is correcting. At this point, IF you can resume the rally with new sustained highs, the third count would project a possible run to the 50.87 area.
PriceCounts – Not about where we’ve been , but where we might be going next!
The PriceCount study is a tool that can help to project the distance of a move in price. The counts are not intended to be an ‘exact’ science but rather offer a target area for the four objectives which are based off the first leg of a move with each subsequent count having a smaller percentage of being achieved. It is normal for the chart to react by correcting or consolidating at an objective and then either resuming its move or reversing trend. Best utilized in conjunction with other technical tools, PriceCounts offer one more way to analyze charts and help to manage your positions and risk. Learn more at www.qtchartoftheday.com
Trading in futures, options, securities, derivatives or OTC products entails significant risks which must be understood prior to trading and may not be appropriate for all investors. Past performance of actual trades or strategies is not necessarily indicative of future results.

  • Broker’s Trading System of the Week

With algorithmic trading systems becoming more prevalent in portfolio diversification, the following system has been selected as the broker’s choice for this month.
Spartan Gold
PRODUCT
SYSTEM TYPE
Swing
COST
USD 75 / monthly
Recommended Cannon Trading Starting Capital
$20,000
The performance shown above is hypothetical in that the chart represents returns in a model account. The model account rises or falls by the average single contract profit and loss achieved by clients trading actual money pursuant to the listed system’s trading signals on the appropriate dates (client fills), or if no actual client profit or loss available – by the hypothetical single contract profit and loss of trades generated by the system’s trading signals on that day in real time (real‐time) less slippage, or if no real time profit or loss available – by the hypothetical single contract profit and loss of trades generated by running the system logic backwards on back adjusted data. Please read full disclaimer HERE.
Would you like to receive daily support & resistance levels?
Yes
No

 

Daily Levels for March 18th 2024

Trading Reports for Next Week

First Notice (FN), Last trading (LT) Days for the Week:

Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker at 1-800-454-9572.

Explore trading methods. Register Here

* This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.


Weekly Newsletter: Understanding Open Interest, May Wheat Outlook and Automated System of the Week

March 8th, 2024 Filed under Commodity Brokers, Commodity Trading, Day Trading, Future Trading News, Futures Broker, Futures Trading, futures trading education, Grain Futures, Trading Guide, Trading Wheat Futures, Weekly Newsletter | Comment (0)

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Cannon Futures Weekly Letter Issue # 1185

In this issue:
  • Important Notices – Change Your Clocks!
  • Trading Resource of the Week – Trade Alerts Via Email/Text
  • Hot Market of the Week – May Wheat
  • Broker’s Trading System of the Week – MidCap SP Swing System
  • Trading Levels for Next Week
  • Trading Reports for Next Week

 

Important Notices –

  • FED Blackout Period Begins Sat. 9th, lasts for 9 business days
  • A smattering of earnings. Mostly Microcap to Midcap: Adobe Reports
  • Tuesday and Thursday Data: CPI, Jobless claim , Retail sales and PPI
  • Begin Trading June indices if you haven’t already: M = June
  • Spring your Clocks forward for those countries that subscribe to Daylight Savings. 

 

 

Trading Resource of the Week : Understanding Open Interest by CMEgroup.com

Understanding Open Interest
Open interest is the total number of futures contracts held by market participants at the end of the trading day. It is used as an indicator to determine market sentiment and the strength behind price trends.
Unlike the total issued shares of a company, which typically remain constant, the number of outstanding futures contracts varies from day to day.
Open interest is calculated by adding all the contracts from opened trades and subtracting the contracts when a trade is closed.
For example, Sharon, Cynthia and Kurt are trading the same futures contract. If Sharon buys one contract to enter a long trade, open interest increases by one. Cynthia also goes long and buys six contracts, thereby increasing open interest to seven. If Kurt decides to short the market and sells three contracts, open interest again increases to 10.
Open interest would remain at 10 until the traders exit their positions, at which point open interest declines. For example, open interest declines to nine when Sharon sells one contract. When Kurt decides to exit his position, he buys back his three contracts and brings open interest down to six. At this point, until Cynthia decides to sell her six contracts, open interest will remain constant at six.
Open interest and volume are related concepts, one key difference is that volume counts all contracts that have been traded, while open interest is a total of contracts that remain open in the market.
Traders can think of open interest as the cash flowing to the market. As open interest increases, more money is moving into the futures contract and as open interest declines money is moving out of the futures contract.
CME Group products with the largest open interest include Eurodollars, Treasuries and stock index futures.
Open Interest Analysis
Analysts typically use open interest to confirm the strength of a trend. Increasing open interest is typically a confirmation of the trend whereas decreasing open interest can be a signal that the trend is losing strength.
The idea is that traders are supporting the trend by entering the market that increases the open interest. As traders lose faith in the trend they exit the market and open interest declines.
Open interest data is published at the end of each day. Additionally, every Friday afternoon, the CFTC publishes a report called the Commitment of Traders.
This report details open interest from different classes of market participants and whether they are holding a long or short position. This breakdown offers valuable insights into what producers, merchants, processors, users, swap dealers and money managers are doing in the market for a futures contract.
Open interest is one variable that many futures traders use in their analysis of the markets used in conjunction with other analysis to support trade decisions. Large changes in open interest can be an indicator when certain participants are entering or leaving the market and may give clues to market direction.

 

 

  • Hot Market of the Week – May Wheat
Hot market of the week is provided by QT Market Center, A Swiss army knife charting package that’s not just for Hedgers, Cooperatives and Farmers alike but also for Spread traders, Swing traders and shorter time frame application for intraday traders with a unique proprietary indicator that can be applied to your specific trading needs.
May Wheat
May wheat in Chicago broke down into a new contract low yesterday where the chart satisfied its third downside PriceCount objective. It would be normal to get a near term reaction from this level in the form of a consolidation or corrective trade, at least. At this point, IF you can sustain further weakness, we are left with the low percentage fourth objective to aim for around $4.20.
PriceCounts – Not about where we’ve been , but where we might be going next!
The PriceCount study is a tool that can help to project the distance of a move in price. The counts are not intended to be an ‘exact’ science but rather offer a target area for the four objectives which are based off the first leg of a move with each subsequent count having a smaller percentage of being achieved. It is normal for the chart to react by correcting or consolidating at an objective and then either resuming its move or reversing trend. Best utilized in conjunction with other technical tools, PriceCounts offer one more way to analyze charts and help to manage your positions and risk. Learn more at www.qtchartoftheday.com
Trading in futures, options, securities, derivatives or OTC products entails significant risks which must be understood prior to trading and may not be appropriate for all investors. Past performance of actual trades or strategies is not necessarily indicative of future results.

  • Broker’s Trading System of the Week

With algorithmic trading systems becoming more prevalent in portfolio diversification, the following system has been selected as the broker’s choice for this month.
PRODUCT
MidCap SP
SYSTEM TYPE
Swing
COST
USD 110 / monthly
Recommended Cannon Trading Starting Capital
$50,000
The performance shown above is hypothetical in that the chart represents returns in a model account. The model account rises or falls by the average single contract profit and loss achieved by clients trading actual money pursuant to the listed system’s trading signals on the appropriate dates (client fills), or if no actual client profit or loss available – by the hypothetical single contract profit and loss of trades generated by the system’s trading signals on that day in real time (real‐time) less slippage, or if no real time profit or loss available – by the hypothetical single contract profit and loss of trades generated by running the system logic backwards on back adjusted data. Please read full disclaimer HERE.
Would you like to receive daily support & resistance levels?
Yes
No

 

Daily Levels for March 11th 2024

Trading Reports for Next Week

First Notice (FN), Last trading (LT) Days for the Week:

Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker at 1-800-454-9572.

Explore trading methods. Register Here

* This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.


Weekly Newsletter: Trading Alerts Via text! , 1099s and levels for Feb. 12th

February 9th, 2024 Filed under Charts & Indicators, Commodity Brokers, Commodity Trading, Day Trading, Future Trading News, Futures Broker, Futures Trading, futures trading education, Grain Futures, Weekly Newsletter | Comment (0)

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Subscribe to our YouTube Channel

Abstract financial candlestick chart with line graph and stock numbers in Double exposure style background

Cannon Futures Weekly Letter Issue # 1181

In this issue:
  • Important Notices –  1099 Forms, Valentines Day, Chinese New year
  • Trading Resource of the Week – Trade Alerts via Text/email
  • Hot Market of the Week – March SoyMeal
  • Broker’s Trading System of the Week – Unleaded Gasoline Swing Trading System
  • Trading Levels for Next Week
  • Trading Reports for Next Week

 

Important Notices –

    • 1099 forms will be generated for all futures trading accounts held by US clients that placed any trades during the 2023 calendar year. Traders should expect to receive their 1099 forms via mail, email or through their portal in early February.
    1099 forms will be provided directly from the FCM to the client.
Important Events Coming Up:
  • Chinese New Year
  • CPI
  • Valentines day
  • Earnings
  • Fed Speakers
  • More Data including PPI

 

 

Trading Resource of the Week : Real Time Email Alerts Directly to your Phone!

Self-Study Guide to Hedging with Grain and Oilseed Futures and Options. Regardless if you are a farmer, rancher or simply looking to trade grains and livestock futures, this guide will help you understand the ins and outs of trading and hedging using futures and options.
  • You will receive an email each time there is an entry or exit in a simple language along with the current price for that specific market.
  • A licensed series 3 broker at your fingertips
  • Email alerts available to US and Canada and Int’l clients
  • Alerts available for: Stock Indices, Grains, Metals, Rates, Currencies, Meats & Softs
  • Open an account* and receive the Trade Alerts free for 3 months ($357 value)
  • See an example of a recent trade alert for Coffee Futures in the image below

 

 

 

  • Hot Market of the Week – March Soymeal
Hot market of the week is provided by QT Market Center, A Swiss army knife charting package that’s not just for Hedgers, Cooperatives and Farmers alike but also for Spread traders, Swing traders and shorter time frame application for intraday traders with a unique proprietary indicator that can be applied to your specific trading needs.
March Meal
March soymeal resumed its slide where the chart is approaching its third downside PriceCount objective in the $340 area. It would be normal to get a reaction after completing the objective in the form of a near term consolidation or corrective trade, at least. The low percentage fourth count to $231 is not shown here for relevancy but the weekly chart shows significant downside potential remains on a longer term basis.
PriceCounts – Not about where we’ve been , but where we might be going next!
The PriceCount study is a tool that can help to project the distance of a move in price. The counts are not intended to be an ‘exact’ science but rather offer a target area for the four objectives which are based off the first leg of a move with each subsequent count having a smaller percentage of being achieved. It is normal for the chart to react by correcting or consolidating at an objective and then either resuming its move or reversing trend. Best utilized in conjunction with other technical tools, PriceCounts offer one more way to analyze charts and help to manage your positions and risk. Learn more at www.qtchartoftheday.com
Trading in futures, options, securities, derivatives or OTC products entails significant risks which must be understood prior to trading and may not be appropriate for all investors. Past performance of actual trades or strategies is not necessarily indicative of future results.

  • Broker’s Trading System of the Week

With algorithmic trading systems becoming more prevalent in portfolio diversification, the following system has been selected as the broker’s choice for this month.
PRODUCT
SYSTEM TYPE
Swing
COST
USD 160 / monthly
Recommended Cannon Trading Starting Capital
$20,000
The performance shown above is hypothetical in that the chart represents returns in a model account. The model account rises or falls by the average single contract profit and loss achieved by clients trading actual money pursuant to the listed system’s trading signals on the appropriate dates (client fills), or if no actual client profit or loss available – by the hypothetical single contract profit and loss of trades generated by the system’s trading signals on that day in real time (real‐time) less slippage, or if no real time profit or loss available – by the hypothetical single contract profit and loss of trades generated by running the system logic backwards on back adjusted data. Please read full disclaimer HERE.
Would you like to receive daily support & resistance levels?
Yes
No

 

Daily Levels for February 5th 2024

Trading Reports for Next Week

First Notice (FN), Last trading (LT) Days for the Week:

Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker at 1-800-454-9572.

Explore trading methods. Register Here

* This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.

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