Commodity Futures Price
Posted by Martin Thomas on June 12, 2010 · Leave a Comment
Commodity futures price quotes are available for food and fiber, grain and oil seed, interest rates, cattle and hogs, metals, and oil and energy futures. It doesn’t matter if you trade soybeans futures, oil futures, gold futures, natural gas futures copper futures, , or wheat futures knowing the current futures price is vital for profitable futures trading in commodities. You can identify the current price on futures for any given commodity by viewing online at the Chicago Board of Trade (CBOT), Chicago Mercantile Exchange, (CME), (CBOT), the New York Mercantile Exchange (NYMEX), and the commodity exchange, COMEX. We suggest you continue commodity and futures training by taking advantage of free online resources about the commodities markets
Commodity futures contracts are agreements between two parties for the sale of a given quantity of a given commodity on a specified future date. Futures contracts can be for a month or for several years. For example, in June the COMEX trades soy beans futures contracts for delivery in June, July, September, and December of the same year. It also trades contracts for delivery in March, May, July, September, and December of each of the next two years. Then it trades contracts for July and December three years hence.
Understand the difference between Futures and options trading in commodity futures. A futures contract confers the obligation to buy or sell an underlying asset in this case the commodity if the contract is held until expiration. In fact, many traders will close their position before expiration. Producers though who are hedging commodities may decide to take delivery of the underlying commodity. In another case buying calls and buying puts in the commodity futures market confers the option to buy or sell but not the obligation. Selling calls and selling puts, confers the obligation if the buyer decides to exercise the option. There is a major benefit to buying options, which is, the trader only loses their premium if the commodity price does not move as expected.
Below is my video about trading commodities futures
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About Martin Thomas
Martin Thomas is a retired investor, he is a consultant to hedge funds specialising in enhancing trader performance. He founded the Genius Trader Ltd in 2006. He has been advising traders since 2005. He is a guest speaker at Anthony Robbins Wealth Mastery Seminars.
