The ICE Futures Exchange is about to introduce futures trading in wheat, corn, and soy products. They will be cash settled and have extended trading hours to cover important crop reports which historically have been released when the grain markets are closed. May 14th is the planned launch date.
I see this as a tremendous opportunity to participate in market volatility that has typically kept traders on the sidelines. Grain markets often tend to have big “gaps” on the open because the markets are closed when these reports are released. In many cases these “gap opens” don’t allow traders to get in or get out of trades, therefore, they step aside. Up or down, doesn’t matter if you didn’t have a chance to participate now you do have that opportunity.
Cash settlements at the ICE will also offer new opportunities in the grain markets… Now you don’t have to get out because of the delivery process. If you want to stay in the market until expiration so be it. I wouldn’t recommend it but now you have the option to do so.
The CME Group (Globex), in response, has announced expanded trading hours for CBOT grain markets. Effective Sunday, May 20th grains will trade 22 hours a day. The delivery process will remain in effect at the CME.
This might be the first time some of you have been notified of these changes. If you want to stay on top of “market happenings” give me call or send me email.
Series 3 Licensed
Frank J. Cholly
Senior Commodities Broker
Frank brings his clients more than twenty-six years of commodity futures experience. He was a member at the Chicago Board of Trade for 10 years where he filled orders in the grain and financial pits. Frank was also a Lind-Waldock's floor manager for ten years and later joined on as a commodities broker..... Read More
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