Soybeans are the king of speculative trading "soya" complex. The complex contains soybeans, soymeal and soy oil. Soymeal is used mainly for animal feed. Poultry producers and to use most of soymeal. The majority of soybean oil used for cooking and salad oil.
For about $ 1200 margin account, you can manage a value of 5,000 bushels Soybeans contract of about $ 35,000. A 10-cent move equals $ 500. (example: a step 750-760)
For about $ 600 you can handle 60,000soybean oil per pound, a value of about $ 16,000. A move $ 1 of $ 600. (eg 28-29)
For about $ 900 may be 100 tonnes of soymeal value of about $ 20,000 of management. A full 10 point move equals $ 1,000. (example: 210-220)
As you can see, it was granted the privilege of a huge lever. There is great potential for both profit or loss, if you choose to use. Remember that you are not required to use the lever and can deposit all or part of the value of your contactaccount. For example, if you continue to 35.000 $ in your account to a contract of soybean is required 100% coverage of the contract of soybeans and essentially not traded on the influence
Soy has earned a reputation as an alternative fuel. (Bio-Diesel) Similar attention is devoted to corn and ethanol.
There is a business strategy based on processing of soy products. This is called "crush" spread. Works with the purchase of a futures contract for soybeans, then sell a soybeanoil and soymeal contracts. For-profit, we contract for soybean oil and soybean meal contracts. A "spread" is the difference between the two legs.
There is also a crush "reverse" diffusion. The shop sells a touch of soy, then a contract of soybean oil, purchase and buy a contract for soybean meal. Note that a contract for soybeans ($ 35,000) worth roughly the same value of an oil and meal contracts. ($ 16,000 and 20,000 €) So it's a fairly balancedspread.
Soybean, soybean oil and soymeal futures all tend to develop in the same direction, but still different patterns and habits. It 'a good idea to buy the strongest of the three and sell the weakest of the three. One way to determine who is the strongest increase is seen bottom of the chart in an uptrend. Choose the product that formed the basis bigger. You will have a trend most likely scale step. And 'the strongest of the group purchase. You can also see this testWhen you compare the side during the formation of the three. Invert to analyze a topping to sell short.
For the serious practitioner and futures and options soy complex, one of the best on the market of raw materials. They already have, liquidity, volume and open interest in large movements up and down. The graphs show very classic design. Depending on the triangles, head and shoulders, unlock, peaks and holes. Soybeans can not be a chartists dream. Beans also show regular seasonal and cyclicalmodels to be used as general guidelines.
Market trends soy, often for long periods, because it is based on the crop. Over the past forty years, the lowest price in 1968 at $ 2.38 a bushel. All-time high in 1973 to $ 12.90.
The battle cry of the bean bulls is "Beans, boys!" E 'one day could happen.
Over the past five years, Brazil and Argentina are major producers of soybeans. Their harvest season is the opposite of the United StatesSuppliers should keep an eye on the production of the next South and the growing season. Some say that soy old high due to new suppliers in a market approach will not. Never say never.
Of course, time is a great move of the market. During the summer, large movements can occur monthly or weekly reports. Sales in these relationships can be profitable. And displacement threshold of fifty percent ($ 2,500) is not uncommon when the market is rolling, and a report comes out.
The complex of soysuitable for all kinds of different strategies in options and futures. Spreads, spreads, strangles, and synthetic are all good ways to act when the estimated probability is high.
The CBOT electronic trading and has recently started hiring in a short period. Currently, all the soybean complex to stay put options traded.
Futures and options of grain is probably the most volatile group of wheat. Wheat can move very quickly. Wheat is most suitable for aintermediate level of commodity traders want faster results and greater risk. Wheat futures and options trading in violation of corn and soybeans. This is probably because the rain is not so important for corn and soybeans to corn.
Over the last forty years, wheat has traded as low as $ 1.20 in 1960, late and as high as $ 7.50 in mid-1990s. A dollar moves bushel can happen when the market is active. (5,000 dollars) to hang your hat when grain stores. There is an old adage operatorgoes, "Do not sell the wheat until it is hot!" It is true that the grain of a trend towards the end of a campaign of bull with fireworks and peak heights. The lack of panic are unique products. Lack infrequently in the stock market.
Good Trading!
There is a substantial risk of loss in futures and options and may not be suitable for all types of investors. Only risk capital should be used.