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Category: Energy Futures

Standard and Poor’s 500 Futures

Posted on by Ilan

The Standard and Poor’s 500 Futures (commonly referred to as S&P 500 Futures Contracts) are among the most heavily traded derivatives in global markets. As a vital tool for hedging, speculation, and portfolio diversification, these contracts allow traders to take positions on the Standard & Poor’s 500 Index Futures before market opening and even when traditional stock exchanges are closed.

Traders and financial news consumers know the basics of futures on S&P 500, but there are many obscure facts, forgotten trading techniques, and historical trades that can enrich one’s understanding. Below, we delve into ten lesser-known facts about SPX Index Futures, examine real-world case studies, discuss risk potential, and explain why Cannon Trading Company is an exceptional brokerage for futures traders of all experience levels.

10 Obscure Facts About Standard and Poor’s 500 Futures

  1. The First S&P 500 Futures Contract Had a Different Underlying
    The S&P 500 Future was first launched on April 21, 1982, by the Chicago Mercantile Exchange (CME). However, the early contracts were not directly based on the S&P 500 Index but instead on a related basket of stocks. Over time, adjustments were made to better reflect the actual futures on S&P 500.
  2. The Notorious 1987 Crash and Circuit Breakers
    On October 19, 1987—Black Monday—the Standard & Poor’s 500 Index Futures played a pivotal role in accelerating the crash. The market saw a 22.6% drop in one day, leading to the introduction of circuit breakers—automatic halts in futures trading e-mini futures to prevent catastrophic sell-offs.
  3. Trading Pit Hand Signals Still Exist
    While most of the trading today happens electronically, remnants of the old commodity brokerage system remain. Some veteran traders in Chicago and New York still use outdated hand signals to communicate, despite trading via electronic platforms.
  4. The “Fair Value” Calculation is a Game Changer
    SPX Index Futures prices do not always align with the underlying index due to interest rates, dividends, and arbitrage opportunities. Institutional traders monitor the fair value of the futures on S&P 500 to make strategic moves before market openings.
  5. Micro E-mini Futures Changed the Game
    The introduction of micros futures in 2019 made it easier for retail traders to enter the futures trading e-mini futures market. With contracts one-tenth the size of standard S&P 500 Futures Contracts, these new instruments opened up risk-managed access to one of the most liquid markets in the world.
  6. Hedging with Futures Prevented a 2008 Collapse
    During the 2008 financial crisis, firms that effectively used futures on S&P 500 for hedging avoided catastrophic losses. Goldman Sachs, for example, managed to mitigate stock losses by shorting S&P 500 Futures Contracts, preserving billions in value.
  7. The Dark Side of Market Manipulation
    In 2010, the Flash Crash occurred due to high-frequency trading and manipulation of SPX Index Futures. A single trader, Navinder Singh Sarao, used a technique called “spoofing” to move markets with fake orders, temporarily crashing major indices.
  8. The Expiration of Futures Contracts Can Cause Mini Flash Crashes
    S&P 500 Futures Contracts expire quarterly, leading to heightened volatility known as “quadruple witching” when options and futures on indices and stocks all expire simultaneously.
  9. The Role of the VIX in Trading Futures SP500
    The CBOE Volatility Index (VIX), also known as the “fear gauge,” directly influences futures on S&P 500. Traders use the VIX to predict upcoming market swings and hedge against downside risks.
  10. Historical Anomalies Can Repeat
    Market behavior during futures trading e-mini futures often follows historical patterns. Studying past crashes and recoveries in SPX Index Futures can provide traders with predictive insights, such as the dramatic rebounds after the COVID-19 crash in 2020.

Risk Potential in Trading Standard & Poor’s 500 Index Futures

While trading futures can be highly rewarding, it is also fraught with risk. Below are some of the key dangers:

  • Leverage Risk: Futures trading involves substantial leverage, meaning that small price movements can result in massive gains or catastrophic losses.
  • Liquidity Risk: Although S&P 500 Futures Contracts are highly liquid, unexpected geopolitical events can cause slippage, making execution difficult.
  • Overnight Exposure: Unlike stocks, SPX Index Futures trade 24/5, making traders susceptible to overnight movements and global events.
  • Margin Calls: Traders using excessive margin in futures trading e-mini futures can face unexpected liquidation.
  • Psychological Pressure: Trading S&P 500 Futures Contracts requires discipline, as impulsive decisions in volatile conditions can wipe out accounts.

Why Cannon Trading Company is a Great Brokerage for S&P 500 Future Trading

With decades of expertise in commodity brokerage, Cannon Trading Company is a premier destination for traders seeking top-tier platforms and support. Here’s why:

  • Unparalleled Trading Platforms: Cannon Trading offers a selection of the industry’s best platforms for trading futures, including NinjaTrader, TradeStation, and MultiCharts.
  • Regulatory Excellence: The firm has an exemplary reputation with regulatory bodies such as the National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC).
  • 5-Star Ratings on TrustPilot: With consistent top ratings, traders trust Cannon Trading for its reliability and customer service.
  • Education for All Levels: Whether you’re a novice learning what is futures trading or a professional seeking futures broker support, Cannon provides extensive training materials.
  • Micro Futures Accessibility: With micro futures trading e-mini futures, traders can enter the market at lower capital thresholds while maintaining strong risk management.

Understanding Standard and Poor’s 500 Futures requires more than just technical knowledge. Traders who grasp the market’s historical anomalies, obscure trading techniques, and risk factors can navigate volatility with confidence.

By trading with a top-tier futures broker like Cannon Trading Company, traders gain access to elite platforms, regulatory protection, and expert guidance. Whether you’re trading standard S&P 500 Futures Contracts or experimenting with micros futures, Cannon Trading ensures that traders of all levels are equipped for success.

For more information, click here.

Ready to start trading futures? Call us at 1(800)454-9572 – Int’l (310)859-9572 (International), or email info@cannontrading.com to speak with one of our experienced, Series-3 licensed futures brokers and begin your futures trading journey with Cannon Trading Company today.

Disclaimer: Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involve substantial risk of loss and are not suitable for all investors. Past performance is not indicative of future results. Carefully consider if trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Important: Trading commodity futures and options involves a substantial risk of loss. The recommendations contained in this article are opinions only and do not guarantee any profits. This article is for educational purposes. Past performances are not necessarily indicative of future results.

This article has been generated with the help of AI Technology and modified for accuracy and compliance.

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Shocking Risks of Non-Farm Payrolls—Are You Prepared for the Volatility?

Posted on by Jenny Collins

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Non-Farm Payrolls

non farm payrolls

Tomorrow

Non-Farm Payrolls tomorrow is a market moving event.

Non-Farm Payrolls: Be aware and don’t get in right before if you CANNOT handle the increased risk and volatility.
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Daily Levels for March 7th, 2025

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Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
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Copper Prices Surge $6,500 per Contract After Trump’s 25% Tariff Bombshell!

Posted on by Jenny Collins

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Markets Highlights on Copper

Copper

by Mark O’Brien, Senior Broker

General:

The big one! It’s that time of the month again: we’re a couple of days from when the Labor Dept. releases its monthly Non-farm payrolls report. It’s widely considered to be one of the most important and influential measures of the U.S. economy and the report is released at 7:30 A.M., Central Time on the first Friday of the month.

Ahead of that, today the ADP National Employment Report showed payrolls increased by 77,000 jobs in February, the smallest gain since July 2024, after rising 186,000 in January. Economists had forecast private employment advancing 140,000.

The ADP report, jointly developed with the Stanford Digital Economy Lab, likely exaggerates the labor market slowdown and has no correlation with the government’s employment report.

 Softs:

Arabica coffee futures rose sharply today with the market heading back up towards recent record highs. May ICE coffee rose almost 5% to $4.1855 per lb. intraday. Traders indicated the market showing signs of resuming its upward trend after suffering a sharp setback which took prices from a record high of $4.2995 on Feb. 11 to a low of $3.6630 a week ago – a ±$23,900 per contract correction! The market was keeping a close watch on the weather in top grower Brazil with hot, dry conditions raising some concerns about the upcoming crop.

Energy:

Crude oil futures settled down for the fourth consecutive session today after U.S. crude oil stockpiles posted a larger-than-expected build, adding a further headwind as investors worried about OPEC+ plans to increase output in April and U.S. tariffs on Canada, China and Mexico. April West Texas Intermediate crude (WTI) settled down $1.95, or 2.86%, to $66.31 a barrel, its lowest since November ’24. OPEC+, the Organization of the Petroleum Exporting Countries and allies including Russia, decided on Monday to proceed with a planned April oil output increase of 138,000 barrels per day, its first since 2022.

Metals:

Copper

CME/COMEX copper futures soared today following President Donald Trump’s announced 25% tariffs on copper imports during his Tuesday night speech to Congress. May copper rose ±26 cents/lb. (±5.7% as of this blog post – a $6,500 per contract move – to a $4.825/lb. intraday high.
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April Crude Oil

April crude oil is completing its second downside PriceCount objective to the 66.53 area. It would be normal to get a near term reaction from this level in the form of a consolidation or corrective trade. At this point, IF the chart can sustain further weakness, the third count would project a possible slide to a new contract low around 62.78. A trade below the October reactionary low would formally negate the remaining unmet upside objectives.

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Daily Levels for March 6th, 2025

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Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
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Micros Futures

Posted on by Ilan

Micros futures have revolutionized futures trading by providing traders with lower capital requirements and greater flexibility. Whether you are an experienced futures trader or a novice looking to enter the world of futures trading, understanding the intricacies of e mini micro futures can help you make informed decisions. In this comprehensive guide, we will explore 10 obscure facts about micros futures contracts, highlight past case studies, and examine the risks involved in trading futures. Additionally, we will discuss why Cannon Trading Company is a top-tier futures broker for trading futures contracts.

  1. Micros Futures and Their Etymology
    The term “micros futures” originates from the broader category of e mini futures. E mini micro futures represent an even smaller contract size compared to traditional e mini futures, designed to make futures trading more accessible to traders with smaller account sizes. The creation of micro-sized contracts was a direct response to demand from retail traders who wanted exposure to commodity brokerage markets without requiring the large capital commitments of standard futures contracts.
  1. How Micros Futures Have Democratized Futures Trading
    Historically, futures trading was dominated by institutional investors due to the high margin requirements. However, the introduction of micros futures has allowed retail traders to participate in commodity brokerage with smaller position sizes. For example, while a standard S&P 500 futures contract controlled $250 per index point, an e mini futures contract controls $50 per point, and e mini micro futures control just $5 per point. This allows traders to hedge, speculate, and manage risk with much smaller capital exposure.
  1. Unusual Strategies for Trading Micros Futures
    Most traders use common strategies such as trend following and scalping, but there are obscure yet effective strategies that some futures traders employ:

    • Calendar Spread Trading: A technique where traders go long on one micros futures contract while simultaneously shorting a different contract month to profit from price differences over time.
    • Gamma Scalping in Micros Futures: A complex options-related strategy applied to micros futures, though rarely discussed in trading forums.
    • Short Squeeze Trapping: A strategy where traders buy micros futures ahead of a suspected short squeeze, capitalizing on rapid price movements.
  1. The Forgotten Role of Open Interest in Micros Futures
    Many traders focus solely on volume but ignore open interest, which can be a hidden indicator of price movements. Open interest measures the total number of outstanding contracts that have not been settled. If open interest rises alongside price increases in e mini micro futures, it indicates strong bullish sentiment. Conversely, if prices rise but open interest declines, it might signal a potential reversal.
  1. Micros Futures Have Lower Tick Value, But Can Still Be Risky
    While the lower tick value of micros futures makes them appealing, risk is still a significant factor. Consider the micro Nasdaq-100 futures (MNQ), which move in increments of 0.25 index points, with each tick worth $0.50. However, with enough contracts, a trader can still experience substantial gains or losses. One real-life case study involves a retail trader who attempted to hedge a portfolio using micro S&P 500 futures (MES) but miscalculated leverage, leading to an unexpected $10,000 loss in a matter of hours.
  1. Liquidity Concerns with Micros Futures
    Although micros futures have gained traction, they still have lower liquidity compared to standard e mini futures. This can lead to wider bid-ask spreads, which can impact trade execution. Some traders overlook slippage risks in micros futures, only to find that in fast-moving markets, execution prices differ significantly from their intended entry points.
  1. The Impact of Algorithmic Trading on Micros Futures
    High-frequency trading (HFT) algorithms actively participate in the micros futures market, often creating rapid price fluctuations. Some traders use the “iceberg order” technique to hide their true order size and avoid being exploited by algorithms that hunt for liquidity. This trading technique is especially useful when dealing with micros futures contracts, where market depth can vary.
  1. Unique Risk Factors Associated with Micros Futures
    While micros futures offer smaller contract sizes, traders must still account for the following risk factors:

    • Margin Call Risks: Due to the leverage involved in trading futures, even micros futures can result in margin calls if not managed correctly.
    • Gaps in Overnight Trading: Unlike equities, micros futures trade nearly 24 hours a day, which means significant price gaps can occur outside of regular trading hours.
    • Psychological Biases: Some traders falsely assume that because micros futures are smaller, they carry minimal risk. However, an overleveraged micros futures position can be just as devastating as a poorly managed standard futures trade.
  1. Case Study: Micros Futures and the 2020 Market Crash
    During the market crash of 2020, many retail traders turned to micros futures to hedge their portfolios. A notable example involves a futures trader who strategically shorted micro crude oil futures (MCL) ahead of the historic drop into negative territory. This trader correctly anticipated the lack of storage capacity for oil and managed to turn a $5,000 account into $50,000 in just weeks.
  1. Why Cannon Trading Company Is an Ideal Futures Broker

    2. Choosing the right futures broker is critical for success in trading futures. Cannon Trading Company stands out as a premier choice for several reasons:

    • Wide Selection of Trading Platforms: Cannon Trading offers access to top-tier trading platforms like NinjaTrader, TradeStation, and MultiCharts, ensuring that futures traders can execute trades seamlessly.
    • 5-Star Ratings on TrustPilot: With stellar customer reviews, Cannon Trading has built a reputation for excellent customer service and reliability.
    • Decades of Experience: With over three decades of experience in the futures trading industry, Cannon Trading provides expert insights to traders of all levels.
    • Regulatory Excellence: The firm maintains exemplary compliance with the National Futures Association (NFA) and other regulatory bodies, ensuring a safe trading environment.
    • Dedicated Customer Support: Unlike many online brokers, Cannon Trading offers personalized customer service, making it an excellent choice for both novice and experienced futures traders.

Micros futures have transformed the landscape of futures trading, making it more accessible while still offering significant opportunities and risks. Understanding the nuances of e mini micro futures, applying advanced trading techniques, and working with a reputable futures broker like Cannon Trading Company can significantly enhance a trader’s experience and profitability. As more traders turn to micros futures to gain exposure to the markets, staying informed about these lesser-known aspects of futures trading will be key to long-term success.

For more information, click here.

Ready to start trading futures? Call us at 1(800)454-9572 – Int’l (310)859-9572 (International), or email info@cannontrading.com to speak with one of our experienced, Series-3 licensed futures brokers and begin your futures trading journey with Cannon Trading Company today.

Disclaimer: Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involve substantial risk of loss and are not suitable for all investors. Past performance is not indicative of future results. Carefully consider if trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Important: Trading commodity futures and options involves a substantial risk of loss. The recommendations contained in this article are opinions only and do not guarantee any profits. This article is for educational purposes. Past performances are not necessarily indicative of future results.

This article has been generated with the help of AI Technology and modified for accuracy and compliance.

Follow us on all socials: @cannontrading

March Contract Notices Coming in Hot! First Notice Day & Last Trading Day Guidelines

Posted on by Jenny Collins

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First & Last trading Days for March 2025

March Contract Notices

FND/LTD:

Below are the March contracts which are entering First Notice or Last Trading Day for March.

Be advised, for contracts that are deliverable, it is requested that all LONG positions be exited two days prior to First Notice and ALL positions be exited the day prior to Last Trading Day.

March Contract:

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June 10 Year Notes:

112’02 next target?

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Daily Levels for March 4th, 2025

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Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
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Market Prep: Last Trading Day of February, March Bitcoin, PCE Report & Key Trading Checklist

Posted on by Jenny Collins

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Different Markets for Day Trading, March Bitcoin

bitcoin

March Bitcoin:

Tomorrow is the last trading day for February. Last and first trading days of the months can at times be more volatile and at times have a chance to become a trending day.

Also tomorrow is PCE ( Personal Consumption Expenditures, an inflation indicator watched closely by the market).

Last but not least if you are trading bonds and ten years, time to trade the June contract.

Day Trading

Trader’s Check List:

·        Review prior day statement

·        Check for any working orders on your platforms.

·        Be aware of contract rollover dates

·        Set a daily loss limit and learn NOT to overtrade

·        Understand what reports are coming out today

·        Make sure you are not distracted

·        Calculate appropriate trading size based on current volatility and account size

·        Start with Larger Time Frame charts to get proper perspective

·        Understand what your goal is

·        Measure your success or lack of

·        Spend time furthering your trading education and exploring different methods

·        Put trading in perspective and make sure the overall psychology of trading fits you.

 

 

 
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March Bitcoin

The rally in March bitcoin ran out of momentum, leaving behind an interim top in December. Now, on the correction lower, the chart has activated downside PriceCount objectives. The first count has been completed. IF you can sustain further weakness, the second count would project a possible slide to the 76,000 area..

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Daily Levels for February 28th, 2025

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Economic Reports

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All times are Eastern Time (New York)

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Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
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Treasury Bonds & Notes make Bold Moves!

Posted on by Jenny Collins

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Treasury Bonds Notes
Treasury Bonds

 

Treasury Bonds, Notes

Treasury Bonds & Notes – Different market, different trading environments

Each market has different personality, different behavior along with different times of the day when it is most active. If you are finding that the ES (mini SP) is not giving you enough risk/opportunities, then start monitoring a couple of other markets and perhaps explore them in demo / simulated mode.

There are more than a few markets I think are suitable for day-trading. Below you will find some observations, tips along with what is unique about these markets, personality and most active trading hours.

Interest rates, mostly the ten year and 30-year.

In most platforms, the symbols are ZB for 30-year bonds and ZN for 10-year notes.

Product Symbol

ZB

Treasury Bonds

Contract Size

The unit of trading shall be U.S. Treasury Bonds having a face value at maturity of one hundred thousand dollars ($100,000) or multiples thereof

Price Quotation

Points ($1,000) and 1/32 of a point. For example, 134-16 represents 134 16/32. Par is on the basis of 100 points.

Product Symbol

ZN

Underlying Unit

One U.S. Treasury note having a face value at maturity of $100,000 < Treasury Bond.

Price Quote

Points ($1,000) and halves of 1/32 of a point. For example, 126-16 represents 126 16/32 and 126-165 represents 126 16.5/32. Par is on the basis of 100 points.

Tick Size

(minimum fluctuation)

One-half of one thirty-second (1/32) of one point ($15.625, rounded up to the nearest cent per contract), except for intermonth spreads, where the minimum price fluctuation shall be one-quarter of one thirty-second of one point ($7.8125 per contract).

Contract Months

The first five consecutive contracts in the March, June, September, and December quarterly cycle.

These contracts are often affected by many of the economic reports that come out at 8:30 Am Eastern and there is very active volume between the hours of 8 am EST and 3 PM EST

Volume on both contracts is very good. Ten years will often have 1 million contracts traded per day (might be the second most active US futures market after the mini SP 500) and the bonds will avg. around 1,300,000 contracts.

These markets can experience very volatile movements during and right after different reports but then will often trade smooth or in an intraday trend the rest of the day.

Another advantage for these markets is that the exchange fees per trade are LOWER than the ones on the stock index futures.
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May Sugar Chart for your review below!

May sugar is completing its second upside PriceCount objective to the 19.96 area. It would be normal to get a near term reaction from this level in the form of a consolidation or corrective trade. At this point, if the chart can sustain further strength, the third count would project a possible run to the 21.57 area which is consistent with a challenge of the fall highs.

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Daily Levels for February 25th, 2025

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Economic Reports

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Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
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Natural Gas & Copper Eye Upside Amid Post-Holiday Market Turbulence; Softs & Metals Lead the Charge

Posted on by Jenny Collins

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Busy Friday to Finish a Short Trading Week

By Ilan Levy-Mayer, VP

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It has been a volatile short trading week post President’s Day long weekend.

Wild swings across the board with softs and metals leading the way.

Tomorrow we have new home sales, flash PMI and University of Michigan reports which will be watched closely for the inflation outlook.

Watch both natural gas and copper as these markets are establishing a tend to the upside.

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time news and markets outlook via videos updates daily?

Simply visit us on our market research section. FREE to clients and prospects!
Daily Updates & Market Research

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Daily Levels for February 21st, 2025

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Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
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Corn Futures Contract

Posted on by Ilan

The corn futures contract remains one of the most actively traded agricultural commodities in the futures markets. As global demand for corn continues to rise due to its essential role in food production, animal feed, and ethanol production, futures traders seeking profitable opportunities often turn to corn futures as a key component of their portfolio.

10 Essential Tips for Trading Corn Futures in 2025

  1. Understand Supply and Demand Dynamics
    Corn prices are highly sensitive to global supply and demand. Factors such as droughts, floods, and geopolitical trade policies can drastically affect supply, while increased biofuel production and livestock feed demand can drive prices higher.
  2. Monitor USDA Reports
    The United States Department of Agriculture (USDA) publishes reports such as the World Agricultural Supply and Demand Estimates (WASDE), Crop Progress Reports, and Grain Stocks Reports. These provide valuable insights into corn production, yield forecasts, and potential price movements.
  3. Follow Seasonal Trends
    Historically, corn futures contracts tend to follow seasonal price patterns. Prices often drop during harvest (September-November) when supply increases and rise in the planting months (April-May) when weather concerns create uncertainty.
  4. Choose a Reliable Futures Broker
    Working with a reputable futures trading broker is essential for executing trades efficiently. Firms like Cannon Trading Company offer a wide selection of futures trading platforms and have a solid track record with 5-star ratings on TrustPilot, making them a great choice for traders of all levels.
  5. Hedge Against Price Volatility
    Agribusinesses and institutional investors often use corn futures contracts to hedge against price fluctuations. Understanding how to use these contracts for risk management can provide a strategic edge.
  6. Utilize Technical and Fundamental Analysis
    Successful futures traders rely on both technical indicators (such as moving averages and Fibonacci retracements) and fundamental analysis (such as crop reports and geopolitical news) to make informed decisions.
  7. Watch for Inflation and Interest Rate Trends
    Economic factors such as inflation and interest rates influence the overall commodity markets. Rising interest rates can strengthen the U.S. dollar, making corn exports more expensive and potentially lowering demand.
  8. Stay Updated on Trade Agreements
    Global trade agreements and tariffs, particularly between the U.S., China, and the European Union, significantly impact corn prices. Keeping track of new trade deals is crucial for trading futures successfully.
  9. Consider Algorithmic and Automated Trading
    Advanced trading technology has made futures contract trading more accessible through algorithmic and automated trading strategies. Platforms offered by Cannon Trading Company enable traders to execute trades with precision and speed.
  10. Diversify with Other Agricultural Futures
    While trading futures in corn can be profitable, diversifying with soybean, wheat, and other crop futures can reduce risk and enhance overall portfolio stability.

Expected Trends for Corn Futures in 2025

Climate Change and Weather Volatility

Extreme weather conditions are expected to continue affecting global corn production. Unpredictable droughts and flooding could lead to significant price swings in corn futures contracts.

Biofuel and Ethanol Demand

The global push for renewable energy sources will likely keep ethanol demand high, increasing the need for corn as a primary biofuel ingredient.

Rising Input Costs

Fertilizer and transportation costs have been climbing, impacting production expenses and potentially pushing corn prices higher in 2025.

Geopolitical Tensions and Trade Policies

The U.S.-China trade relationship remains a key factor. Tariffs or trade barriers could significantly impact corn exports and futures prices.

Key Reports to Monitor for Corn Futures Trading

  • USDA WASDE Report – Offers supply and demand projections.
  • Grain Stocks Report – Provides insights into corn inventory levels.
  • Crop Progress Report – Tracks planting and harvesting progress.
  • CFTC Commitment of Traders Report – Shows market sentiment among traders.
  • EIA Ethanol Production Report – Measures ethanol demand, affecting corn consumption.

Historical Performance of Corn Futures and Agricultural Commodities

Historically, corn futures contracts have shown cyclical patterns influenced by weather conditions, government policies, and technological advancements in agriculture. The 2012 drought, for example, caused record-high prices, while increased yields in the following years led to price stabilization. Other crop futures contracts, such as wheat and soybeans, have followed similar trends, often correlating with corn prices due to their shared agricultural and economic factors.

Why Choose Cannon Trading Company for Futures Trading?

For traders looking to engage in futures contract trading, selecting a reputable futures trading broker is essential. Cannon Trading Company stands out for several reasons:

  • Top-Performing Trading Platforms: Offering a range of advanced platforms for both beginner and experienced futures traders.
  • Decades of Experience: With a long history in the futures trading industry, Cannon Trading provides expert guidance.
  • Outstanding Customer Support: Rated 5 out of 5 stars on TrustPilot, the firm is recognized for its commitment to client satisfaction.
  • Regulatory Compliance: Fully compliant with NFA regulations, ensuring transparency and security for trading futures.

The corn futures contract presents numerous opportunities for profit in 2025. By staying informed on market trends, monitoring key reports, and partnering with a reputable futures trading broker like Cannon Trading Company, traders can navigate the complexities of futures contract trading with confidence.

For more information, click here.

Ready to start trading futures? Call us at 1(800)454-9572 – Int’l (310)859-9572 (International), or email info@cannontrading.com to speak with one of our experienced, Series-3 licensed futures brokers and begin your futures trading journey with Cannon Trading Company today.

Disclaimer: Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involve substantial risk of loss and are not suitable for all investors. Past performance is not indicative of future results. Carefully consider if trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Important: Trading commodity futures and options involves a substantial risk of loss. The recommendations contained in this article are opinions only and do not guarantee any profits. This article is for educational purposes. Past performances are not necessarily indicative of future results.

This article has been generated with the help of AI Technology and modified for accuracy and compliance.

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Dollar Index Eyes 105.47 as Economic and Geopolitical Risks Mount

Posted on by Jenny Collins

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dollar index

Movers & Shakers by John Thorpe, Senior Broker

Dollar Index Eyes 105.47

Movers and Shakers : QUIET Econ data and fed speak tomorrow

Market volatility is here to stay for the foreseeable future

Choose your opportunities wisely.

Updated: February 18, 2025 2:01 pm

Russia – Ukraine War Update

–Ukraine’s military said Russia launched a barrage of 147 attack drones against Ukraine overnight. Out of this, the Ukrainian Air Force reported shooting down 83, while 59 did not reach their targets. Several storage facilities and private residences were reported damaged.

–The Caspian Pipeline Consortium said that Ukrainian drones hit one of its major oil pipelines in southern Russia’s Kropotkinskaya pumping station in the Krasnodar region, affecting supply from neighbouring Kazakhstan.

–Ukraine’s Security Service claimed responsibility for the attack on the oil pipeline and said that Moscow’s Ilsky oil refinery in Krasnodar was also hit, with at least 20 explosions heard in the area.

–Russia’s Defence Ministry said its forces captured the settlement of Fyholivka in eastern Ukraine’s Kharkiv region. A second announcement later said that the village of Sverdlikovo in Russia’s Kursk region was taken back from Ukraine’s forces.

–US Secretary of State Marco Rubio travelled to Saudi Arabia in advance of planned peace talks between United States and Russian officials over the war in Ukraine.

–Kremlin spokesperson Dmitry Peskov confirmed that Russia would be represented by Foreign Minister Sergey Lavrov and foreign policy director Yuri Ushakov at the meetings with the US in Riyadh.

–Peskov also said that Russian officials would talk with US counterparts about restoring ties, negotiating a peaceful settlement to the war in Ukraine and preparing a meeting between Russian President Vladimir Putin and US President Donald Trump.

 
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–The Kremlin said any plans to deploy European peacekeeping troops after Kyiv and Moscow strike a peace deal would make the matter complex.

–French President Emmanuel Macron hosted an emergency meeting with leaders from key European Union nations at the Elysee Palace in Paris to discuss the EU’s reaction to Washington’s peace talks with Moscow.

–Hungary’s Foreign Minister Peter Szijjarto told a media briefing that the Paris meeting, to discuss the US’s policy shift towards Moscow in its war on Ukraine, would be an attempt to prevent peace. -unlike them, we support Donald Trump’s ambitions; unlike them, we support the US-Russian negotiations; unlike them, we want peace in Ukraine,- Szijjarto said.

–Russia’s Lavrov asked why Europe should be invited to join talks on a peace settlement in Ukraine if European politicians want the war to carry on. He also said Russia would not even consider territorial concessions to Ukraine in future peace talks.

–The spokesperson for Ukrainian President Volodymyr Zelenskyy, Sergii Nykyforov, said that the Ukrainian leader would travel to Saudi Arabia on a long-planned visit the day after the meeting between Russia and US officials wraps up.

–The Ukrainian leader also said he would not recognise any outcome of the Washington-Moscow talks in Saudi Arabia that did not involve Kyiv.

–Zelenskyy met with the United Arab Emirates’s Sheikh Mohamed bin Zayed Al Nahyan during a visit to the UAE, where Sheikh Mohammed reportedly committed to supporting efforts for a peaceful resolution to the war and continuing initiatives to ease the humanitarian impact.

–Zelenskyy is now in Turkiye to meet with President Recep Tayyip Erdogan to discuss prisoner exchanges between Ukraine and Russia.

-The Dollar Index Eyes 105.47.

 

 

 

Tomorrow:

  • FOMC Minutes
  • Housing Starts
  • NO Crude Oil Numbers ( pushed to Thursday)
March US Dollar Index

The March dollar index negated its original downside PriceCounts off the January high early this month. Now, the chart has activated fresh counts off the larrger leg where the first count projects a run to the 105.47 area. It would take a trade below the November reactionary low to formally negarte the remaining unmet upside objectives.

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Daily Levels for February 19th, 2025

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Economic Reports

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All times are Eastern Time (New York)

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Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
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Services
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Cannon Trading Co., Inc.

12100 Wilshire Blvd

Suite 1640

Los Angeles, CA 90025 US
RISK DISCLOSURE: Past results are not necessarily indicative of future results. The risk of loss in futures trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.