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Movers & Shakers by John Thorpe, Senior Broker
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Daily Levels for February 12th, 2025
Economic Reports
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If one has to define financial futures, it is pretty simple. A financial future is basically a futures contract agreed upon on a short term or long term rate of interest. There are a number of representative financial futures contracts. Financial futures trading also requires you to understand some typical financial terms and terminology. Most popular are the treasury bonds futures in this category. Under this category archive, you will be able to learn and understand the different aspects of financial futures, through the write-ups we have listed for the readers.
Cannon Trading can provide assistance. We can provide you with professional advice and help. Whether you approach us for consultation on day trading, crude oil trading or for advice on financial futures, we can give you the answers and solutions that qualify us as one of the best. Another resource that we help you out with is information and knowledge based category archives. This particular category of blogs features extensive and exclusive information on financial futures. Read about it and equip yourself!
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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 and options on futures needs.
December 25 Corn
April Hogs satisfied a second upside PriceCount objective before turning sideways with a range bound trade. At this point, IF the chart can resume its rally with new sustained highs, the third count would project a potential run to the 100.96 area.
PriceCounts – Not about where we’ve been, but where we might be going next!
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Economic Reports
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All times are Eastern Time ( New York)
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The Russell 2000 Futures contract is a cornerstone of the futures trading world, providing traders with a robust tool to speculate on or hedge against movements in small-cap equity markets. Since its inception, the Russell 2000 Futures, often abbreviated as RUT 2000 Futures, has undergone significant evolution, becoming a vital component of modern futures trading. This piece explores its origins, development, and role in the market, while highlighting why trading futures with Cannon Trading Company is an exceptional choice for traders at all experience levels.
The Russell 2000 Index, launched in 1984 by the Frank Russell Company, tracks the performance of the smallest 2,000 stocks within the Russell 3000 Index, representing U.S. small-cap companies. The introduction of the Russell 2000 Futures Contract followed shortly after, in response to increasing demand for products enabling investors to trade on the performance of small-cap stocks in a standardized, liquid manner.
Several financial pioneers were instrumental in bringing the Russell 2000 Futures to life. William F. Sharpe, a Nobel laureate and consultant to the Frank Russell Company, helped refine the methodology for index construction. His contributions ensured that the Russell indices offered an accurate reflection of market segments.
The Chicago Mercantile Exchange (CME), a leading futures exchange, played a central role in facilitating the trading of these contracts. Key figures at CME, such as Leo Melamed, known as the “father of financial futures,” were advocates for innovation in derivatives markets. Under Melamed’s leadership, the CME expanded its offerings, including equity index futures like the RUT 2000 Futures.
When trading began, many small-cap companies featured in the Russell 2000 were relatively unknown. Traders found the RUT 2000 Futures offered an efficient way to manage exposure to this high-risk, high-reward market segment. Anecdotes from early trading sessions illustrate the volatility of small-cap stocks and the corresponding opportunities in the futures market. For instance, a trader who identified a trend in burgeoning tech startups in the early 1990s could leverage RUT 2000 Futures to magnify returns or hedge against broader market risks.
One notable early trade occurred during the dot-com boom. A hedge fund manager, anticipating a bubble in small-cap tech stocks, used Russell 2000 Futures contracts to short the index. When the bubble burst, this strategic use of futures resulted in substantial profits for the fund, solidifying the contract’s reputation as a powerful tool for both speculation and risk management.
Over the decades, the Russell 2000 Futures have evolved in terms of accessibility, technology, and utility. Originally traded in open-outcry pits, the advent of electronic trading platforms revolutionized futures trading. CME’s Globex platform, introduced in 1992, allowed traders worldwide to access RUT 2000 Futures, increasing liquidity and efficiency.
The modern Russell 2000 Futures contract has standardized terms that make it attractive to a broad range of traders. Key specifications include:
These attributes make it suitable for individual traders and institutional investors alike. Additionally, the introduction of E-mini and Micro E-mini RUT Futures has lowered barriers to entry, enabling smaller traders to participate without excessive capital requirements.
Consider a trader bullish on small-cap stocks due to favorable economic conditions. With the Russell 2000 Index trading at 1,800 points, the trader buys two RUT 2000 Futures contracts at this level. Each contract’s notional value is $90,000 ($50 × 1,800), requiring a margin deposit of roughly $6,000 per contract.
The index rises to 1,850, yielding a gain of 50 points. For two contracts, the profit is $5,000 ($50 × 50 points × 2 contracts). This example demonstrates how RUT 2000 Futures enable traders to amplify returns with minimal upfront capital, though the risks of leveraged losses must also be acknowledged.
The evolution of futures trading platforms and brokerage services has been crucial in shaping the market. Futures brokers serve as the backbone of trading, offering access to platforms, market data, and educational resources.
Cannon Trading Company has established itself as a top-tier futures broker, earning 5-star ratings on TrustPilot and accolades for its decades of experience. Here’s why Cannon Trading is a standout choice for trading futures contracts:
In 2020, a small-cap mutual fund manager faced uncertainty amid the COVID-19 pandemic. Concerned about potential market downturns, they used RUT 2000 Futures to hedge their portfolio. By selling futures contracts, the manager mitigated losses as the index fell, demonstrating the contracts’ value for risk management.
An individual futures trader, recognizing strong earnings growth in small-cap companies in 2021, decided to go long on E-mini RUT Futures. With precise entry and exit strategies, the trader achieved a 25% return on initial margin, highlighting the profit potential of leveraged futures trading.
As technology advances, the Russell 2000 Futures market will continue to grow. Innovations like AI-driven trading algorithms and blockchain-based clearing systems promise to enhance efficiency and transparency. Moreover, the increasing globalization of markets means more traders from diverse backgrounds will access RUT 2000 Futures, further boosting liquidity.
The Russell 2000 Futures contract has evolved from a niche product into a vital instrument for traders worldwide. With its origins rooted in the vision of financial pioneers, the RUT 2000 Futures now serve as a powerful tool for hedging and speculation in the small-cap equity market. For traders seeking an exceptional futures broker, Cannon Trading Company stands out for its unparalleled platform selection, regulatory excellence, and client-focused approach. Whether you are a novice futures trader or an experienced market participant, Cannon Trading provides the resources and support necessary to succeed in the dynamic world of futures trading.
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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The wheat future contract has been a cornerstone of the agricultural futures market for centuries, allowing producers, processors, and investors to hedge against price fluctuations in a volatile global market. Today, futures trading has evolved into a sophisticated financial tool supported by cutting-edge technology and regulatory frameworks. This article will explore the evolution of wheat futures and other farm crop contracts, providing real-life anecdotes, case studies, and hypothetical trading scenarios to illustrate their significance. Additionally, we’ll delve into why Cannon Trading Company, with its decades of experience, stellar reputation, and wide selection of free platforms, stands out as a premier choice for trading wheat and other agricultural futures like class 3 milk futures and the corn futures contract.
The origins of wheat future contracts date back to the mid-19th century with the establishment of the Chicago Board of Trade (CBOT) in 1848. Farmers and grain merchants needed a system to protect themselves from unpredictable price swings caused by weather, supply chain issues, and geopolitical events. Enter the futures market: a standardized contract to buy or sell wheat at a predetermined price on a specific future date.
Over time, the concept expanded to include other farm crop contracts, such as the corn futures contract and class 3 milk futures. Initially, futures trading was dominated by local farmers and merchants. However, the advent of electronic trading in the late 20th century democratized access, attracting institutional investors, hedge funds, and individual traders from around the globe.
Technological advancements have played a pivotal role in this evolution. Today, platforms like those offered by Cannon Trading Company provide traders with real-time market data, advanced charting tools, and risk management features, making futures trading more accessible and efficient than ever before.
One of the most dramatic examples of volatility in the wheat market occurred in 2008. Global wheat prices skyrocketed due to poor harvests, rising demand from emerging markets, and export restrictions imposed by major producing countries. For farmers in the U.S. Midwest, this presented both challenges and opportunities.
A Kansas wheat farmer, for example, used wheat future contracts to lock in a sale price of $12 per bushel in March 2008, months before harvesting. By the time his crop was ready, spot prices had dropped to $8 per bushel due to improved weather conditions and easing supply concerns. His decision to hedge through futures saved his business from significant losses, highlighting the value of futures trading for risk management.
In the 2010s, a small hedge fund based in Illinois recognized the interconnectedness of farm crop contracts. By analyzing weather patterns, they predicted a poor corn harvest in the Midwest, leading them to short corn futures contracts while going long on wheat future contracts due to substitution effects in animal feed markets. Their calculated bets paid off handsomely, yielding a 35% return for the year and showcasing how futures can be used for speculative gains as well as hedging.
Imagine a dairy processor who relies on milk as a primary input. Concerned about rising costs, they decide to trade class 3 milk futures to secure a stable price for the next six months. By locking in a price of $17.50 per hundredweight, they mitigate the risk of price spikes caused by fluctuating feed costs for dairy cattle. Meanwhile, a speculator on the other side of the trade takes on the risk, hoping to profit from price movements. This mutually beneficial arrangement demonstrates the dual nature of futures markets: risk transfer and price discovery.
Cannon Trading Company has established itself as a trusted partner for traders of all experience levels. Its wide selection of free platforms, including advanced tools for analyzing wheat future contracts, class 3 milk futures, and the corn futures contract, makes it an excellent choice for anyone engaged in futures trading. Here’s why:
Trading wheat future contracts offers several advantages:
While futures trading offers significant opportunities, it’s not without risks. Leverage can magnify losses as well as gains, and market movements can be unpredictable. However, with the right tools and strategies—like those provided by Cannon Trading Company—traders can navigate these challenges effectively.
As climate change and geopolitical tensions continue to impact agricultural markets, the role of farm crop contracts like wheat future contracts, class 3 milk futures, and the corn futures contract will only grow in importance. Technological innovations, such as blockchain-based smart contracts and AI-driven market analysis, promise to further revolutionize futures trading, making it more transparent and efficient.
The journey of wheat future contracts and other farm crop contracts from their humble beginnings to today’s sophisticated markets is a testament to the resilience and adaptability of the agricultural sector. Real-life examples and hypothetical scenarios illustrate the value of these contracts for hedging and speculation alike. For traders seeking a reliable partner in this dynamic market, Cannon Trading Company stands out with its top-rated platforms, extensive experience, and commitment to customer success.
Whether you’re trading wheat future contracts, class 3 milk futures, or the corn futures contract, Cannon Trading provides the tools and support you need to succeed. By leveraging their expertise and resources, you can navigate the complexities of futures 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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The corn futures contract holds a pivotal place in the world of futures trading, serving as a key tool for agricultural producers, investors, and speculators alike. Its history, evolution, and future prospects provide a fascinating lens through which to explore the complexities of the trading futures market. This article delves into the origins of the corn futures contract, traces its development over time, forecasts its trajectory for 2025, and examines why Cannon Trading Company is a standout brokerage in this domain.
The concept of futures trading emerged in the 19th century, coinciding with the industrialization of agriculture in the United States. Farmers, processors, and distributors faced volatile prices due to unpredictable weather, market demand, and global economic conditions. To address this, the Chicago Board of Trade (CBOT), established in 1848, pioneered standardized contracts for agricultural commodities.
Corn, being a staple crop with vast economic significance, became one of the first commodities to have a futures contract. The introduction of the corn futures contract allowed farmers to lock in prices for their crops before harvest, thereby mitigating the risks associated with fluctuating prices. Similarly, buyers like millers and exporters benefited from the ability to secure a consistent supply at predictable costs. The contract was initially straightforward, detailing a specific quantity of corn to be delivered at a future date, with quality and delivery standards set to minimize disputes.
Over the decades, the corn futures contract underwent significant transformations to meet the changing demands of the market. The CBOT implemented innovations to enhance liquidity, transparency, and accessibility in futures trading. By the mid-20th century, electronic trading platforms replaced the open outcry system, making it easier for traders worldwide to participate.
Advancements in technology allowed for the introduction of mini and micro corn futures contracts, enabling smaller traders to access the market. Margin requirements and position limits were refined to ensure market stability while accommodating both large-scale institutional investors and individual speculators. Additionally, the rise of algorithmic trading brought new efficiencies and challenges to the trading futures landscape.
As global trade expanded, the corn futures market reflected the crop’s international importance. Corn’s applications diversified, with demand increasing for its use in ethanol production, livestock feed, and processed foods. This broadened the participant base for corn futures contracts, attracting not only agricultural stakeholders but also energy companies, food manufacturers, and hedge funds.
Looking ahead to 2025, the corn futures contract is poised for further evolution. Several trends are shaping its trajectory:
When engaging in trading futures, selecting the right brokerage is crucial. Cannon Trading Company has earned its reputation as a top-tier firm, consistently rated 5 out of 5 stars on TrustPilot. With decades of experience in the futures trading industry, Cannon Trading combines expertise, technology, and exceptional customer service to offer unparalleled support to traders.
The enduring relevance of the corn futures contract lies in its ability to provide stability and opportunity in an unpredictable market. For farmers, it is a lifeline, enabling them to secure income regardless of market conditions. For investors and speculators, it offers a chance to capitalize on price movements driven by factors like weather, trade policies, and global demand.
In today’s interconnected world, trading futures is more than a financial activity—it’s a way to manage risks and contribute to the smooth functioning of essential supply chains. The versatility of the corn futures contract ensures its place as a cornerstone of the futures trading ecosystem.
The corn futures contract is a testament to the ingenuity of the trading futures market, evolving from its humble beginnings in 19th-century Chicago to a sophisticated global instrument. Its adaptability to changing market conditions and technological advancements underscores its resilience and relevance.
As we look to 2025, the corn futures market is set to embrace innovations that enhance efficiency, sustainability, and inclusivity. For those seeking to navigate this dynamic landscape, Cannon Trading Company offers the expertise, tools, and support needed to excel in futures trading. With its stellar reputation, free trading platforms, and decades of experience, Cannon Trading is the brokerage of choice for those engaging in corn futures contracts and beyond.
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