When you are wading through all the data involved in making smart trades, timing is critical. Working with obsolete data will likely bring disastrous results. It’s imperative that you use real-time ticker data for your grain stocks trading.
This level of information is the lifeblood of smart trading, no matter which commodity you trade. The DTN suite of products offers current grain prices, analytical tools, and up-to-date news. Reach out to a team member for a free demo today.
A Brief Grain Market Primer
Grain stocks commodity trading is a popular undertaking for people who aren’t afraid of risk. The futures market allows people to buy and sell grain stocks at current prices through contracts that specify a future fulfillment date. But grain stocks commodity trading is not without risk. By the time the contract is due, grain prices may have dramatically changed.
The Chicago Board of Trade includes seven grain products for commodity trading:
- Used for human and livestock consumption
- Used in the production of industrial plastics and solvents
- Trades at 5000 bushels per contract
- Delivery months: March, May, July, September, and December
- Used for human consumption, livestock feed, and ethanol production
- Trades at 5000 bushels per contract
- Active delivery months: March, May, July, September, and December
- A tremendous range of uses
- Trades in contracts of 5000 bushels
- Active months: January, March, May, July, August, September and November
- Used for livestock feed and production of bread and pasta products
- Traded in contracts of 5000 bushels
- One of the most volatile grain markets
- Used in food, fertilizers, packing materials, and fuel
- Trades in contracts of 2000 hundredweight (cwt)
- Active delivery months: January, March, May, July, September, and November
- Widely used edible oil
- Used in biodiesel
- Trades in contracts of 60,000 pounds
- Active months for delivery: January, March, May, July, August, September, October and December
- The primary protein in animal feed
- Used in baby food and beer
- Trades in contracts of 100 short tons
- Delivery months: January, March, May, July, August, September, October and December
You can invest in individual grains or an exchange-traded fund (ETF). An ETF lets you invest in a collection of stocks within the same sector.
To buy specific grain stocks, you need to establish an account with a registered commodity futures broker. To purchase ETF shares, you can use a standard brokerage account.
How Does Real-Time Ticker Data Benefit You?
When you are a trader in grain stocks, you are working with a somewhat volatile market. Extreme weather, international politics, and traditional market forces continually impact the market’s performance.
Real-time ticker updates give you essential information for your business:
- Intraday Charts – These valuable data keep you on top of stock performance. Prices move too quickly to rely on stale numbers. Real-time ticker information allows for quick decisions.
- Trading Volume – Knowing how many players are in the market at any given time is vital. Trading volume data helps you decide how seriously to take an uptick in a grain stock’s price.
- Profit and Loss – Monitor your existing stock positions with real-time data so that you can analyze potential moves and their consequences. This information helps you determine if it’s time to cut your losses or to reinvest in a stock.
Keep an Eye on Trends
Successful trading is all about recognizing trends. Having the ability to view ticker data in real-time means that you stay on top of patterns as they emerge. Trend data can deliver key insights that put you in a position to make a profitable trade.
To properly navigate the bulls and bears of the market, you need reliable and up-to-the-minute trading information. Desktop and mobile apps that allow you to track this data in real-time are crucial to your success.
Ideally, you’ll have access to data coming from a dedicated ticker plant and quote server. This level of stability ensures that you receive accurate, real-time data without interruption. With the power of this ticker data, you can monitor shifts in the market to guide your trading decisions.
Outside of traditional supply and demand issues, grain stocks can fluctuate wildly due to weather and pest events. A storm that threatens midwest corn crops will impact the cost of buying and selling corn. An infestation of soybean loopers may push soybean ticker data into high gear.
So, in addition to the ticker stats, you also need to watch weather and agricultural reports. Having a reliable service to feed you the weather and news updates is critical.
Give Yourself a Competitive Edge
The large trading firms all have specialized systems to help them locate and take advantage of the slightest market fluctuations. They probably have a full team with powerful tools to keep them functioning profitably.
A powerful solution that provides ticker data, weather reports, and actionable insights lets you compete and stay profitable, too. You can have access to similarly robust trading solutions.
In addition to the power of up-to-date ticker data, you might want to consider investing in training. Many courses exist to help you understand the grain commodities market more thoroughly. There also are options that focus on building your trading confidence and know-how.
Successful entrepreneurs know that they must always continue to learn, and the trading industry is no different. Utilizing classes and software solutions, you can build, grow, and scale your trading business.
ProphetX Commodities Edition Keeps You on Track
All forms of commodity trading exist in a fast-paced world that examines fractions of time and money to provide hyper-accurate data. To be profitable in trading, you must have tools that help you monitor and analyze all of the incoming data.
The DTN team has developed powerful tools to serve you in all of your trading endeavors. From weather updates to real-time ticker data to industry training, DTN has something to help.
For the grain commodities market, ProphetX Commodities Edition is the go-to solution for all your needs. With maps, bids, and more, it will support you as you establish and grow your business. Contact a DTN expert today to see what this software can do for you.