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The Grain Traders Guide

The Less a man knows about the past and present
The more insecure must be his judgment of the future !
- Sigmund Freud

Preview Guide Order Form

Knowledge of the past and awareness of the present are extremely important when entering into speculative ventures, especially commodity futures trading.  In order to make an informed decision on where the current and future course of prices, one must understand the current environment with in its historical context.

The Grain Traders Guide is organized to give you a broad historical reference.  Presented with in the context of a calendar, the Guide is intended to help organize your thoughts, so that you can approach speculative decisions in a business like fashion.  Hopefully, the Guide will help make your decisions in the grain markets easier and more profitable by providing information like this:

 

CBOT Futures Total Monthly
Performance 1981-1999*

wpe19.jpg (13273 bytes)

* past performance is not necessarily indicative of future results.
note: the following contract months were used to determine performance- Jan=K, Feb=K, Mar=N, Apr=N, May=N, Jun=U, Jul=U, Aug=Z, Sep=Z, Oct=Z, Nov=H, Dec=H.   Data source: CSI Unfair Advantage.

 

The Grain Traders Guide presents Total Monthly Performance figures for Corn, Wheat, and Soybeans.  This information may help improve your timing in the futures markets, as you will be armed with an understanding of past market behavior.

Hedgers may use these performance charts and tables as a guide for timing the marketing of their crops, or purchases.


The Grain Traders Guide is also a valuable historical reference for fundamental information.  Here is a sample of the Supply Side of the Balance Sheet Soybeans

 

Year

 

Planted

 

Harvested

 

Yield

Beginning
Stocks

 

Production

Total
Supply

 

(in million Acres)

Bu/Acre

(in million bushels)

1980/81

70.3

67.9

27

370

1,831

2,201

1981/82

68.1

66.9

31.2

345

2,089

2,434

1982/83

72.3

71

32.6

270

2,314

2,584

1983/84

63.3

61.7

24.9

455

1,535

1,990

1984/85

68.2

66.8

30.3

110

2,028

2,138

1985/86

63.2

62.2

33.2

310

2,063

2,373

1986/87

61.8

59.8

33.1

535

1,980

2,515

1987/88

58.7

57.6

34

480

1,957

2,437

1988/89

58.8

56.8

25.9

280

1,472

1,752

1989/90

60.5

59.1

32

155

1,889

2,044

1990/91

57.7

56.6

32.4

250

1,835

2,090

1991/92

59.8

58.6

31

320

1,817

2,142

1992/93

59.1

58.1

35.9

285

2,085

2,375

1993/94

59.5

56.2

34

290

1,909

2,204

1994/95

61.8

60.7

38.2

150

2,316

2,471

1995/96

62.6

61.7

37

355

2,285

2,645

1996/97

64.3

63.4

35.8

170

2,270

2,445

1997/98

70.9

69.8

39.3

115

2,746

2,866

1998/99

72.7

71.6

40.6

200

2,909

3,115

source: USDA/WASDE reports, September Report.

At your finger tips, you will have a complete reference for the Supply/Usage.  Futures traders will also be able to keep track  of crop progress, and compare the coming weeks to 5 year historical developmental stages.   Historic Crop Progress readings, as well as Crop Conditions values are available in the Grain Traders Guide as well.

The Grain Traders Guide also goes beyond the standard displaying of fundamental data, digging in deeper to help you anticipate the estimates put out by the USDA.

Reliability
October USDA Forecast
Vs.
Final  Estimates

Average
%
Average
Bushels
below above
Production 2.6 196.0 12 6
Exports 15.5 280.0 8 10
Domestic Use 4.1 241.0 10 8
Ending Stocks 20.7 351.0 8 10

Sponsored By:
The Commodity Trader's Almanac 2007

 

 

 

 

 

 

 

 

 

Sponsored By:
The Commodity Trader's Almanac 2007

 

 

 

 

 

 

 

 

 

 

Knowing in advance that in the past 18 years, the USDA has under estimated Production 12 times (66.6%) may help traders and hedgers position themselves before this potentially market moving report is released.


THE DATA CONTAINED HERE IN ARE BELIEVED TO BE RELIABLE BUT CANNOT BE GUARANTEED AS TO RELIABILITY, ACCURACY, OR COMPLETENESS; AND, AS SUCH ARE SUBJECT TO CHANGE WITHOUT NOTICE.  CFEA WILL NOT BE RESPONSIBLE FOR ANYTHING, WHICH MAY RESULT FROM RELIANCE ON THIS DATA OR THE OPINIONS EXPRESSED HERE IN.

DISCLOSURE OF RISK: THE RISK OF LOSS IN TRADING FUTURES AND OPTIONS CAN BE SUBSTANTIAL; THEREFORE, ONLY GENUINE RISK FUNDS SHOULD BE USED. FUTURES AND OPTIONS MAY NOT BE SUITABLE INVESTMENTS FOR ALL INDIVIDUALS, AND INDIVIDUALS SHOULD CAREFULLY CONSIDER THEIR FINANCIAL CONDITION IN DECIDING WHETHER TO TRADE. OPTION TRADERS SHOULD BE AWARE THAT THE EXERCISE OF A LONG OPTION WOULD RESULT IN A FUTURES POSITION.

HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. 

NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL, OR IS LIKELY TO, ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. 

ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM, IN SPITE OF TRADING LOSSES, ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS, IN GENERAL, OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.