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View Full Version : How to find which month to play in commodities

jcsteward
06-29-2007, 02:01 PM
Hi, I'm new to commodities markets.
I find it quite hard to find tradable contract months such as cotton and coffee, etc.
Does anyone have any good suggestions on this?
Thanks,
qitrader
06-29-2007, 02:21 PM
I used to have these same questions. I'll give you what I have learned from others.

You trade the month with the highest volume or opening interest. It is usually the current month. You only roll over once the "front" month has a higher volume and open interest than current month.
jcsteward
06-29-2007, 02:47 PM
I used to have these same questions. I'll give you what I have learned from others.

You trade the month with the highest volume or opening interest. It is usually the current month. You only roll over once the "front" month has a higher volume and open interest than current month.

Thanks for your insight.
tombtrader
06-30-2007, 12:20 AM
You need to be a bit more aware with some food commodities as there are "old crop, new crop" considerations about which month to trade, eg soya beans.
Matt Bowen
07-09-2007, 11:58 AM
Hi Jcsteward,

There are a couple of places that you can use to check the front months as well as the volume and open interest on the contracts

http://www.atticuspartners.com/quotes_and_charts.htm (make sure you use the premium charts)


http://www.britefutures.com/quotes/default.aspx (This one is quick and easy, just go to the bottom and select the contracts).

Hope that helps,

Matt
Matt Bowen
07-09-2007, 04:16 PM
Another great source of commodity pricing information is Commodity Research Bureau as they have cash/spot prices on all commodities.

http://www.crbtrader.com/data.asp?page=flookup

Make sure you request an End-of-Day chart... The first chart will be the spot price.

**Don't use intraday charts for spot prices** (spot prices don't change that fast) :D

As you scroll below the cash price you will see the front month along with the rest of the forward contracts... this makes it VERY easy to look for backwardation or contango price structure. I think anybody whose a hedger or spread trader will really apprciate this page.

All the best,