Following the Trend
A trend following trader’s dream, this sector is a regular supermarket with everything from coffee, sugar, rice, corn, cotton, lumber and even live hogs. Yes, most super markets do not sell live cattle but this one does. All you need to know about the instruments is available in the price patterns and background information so for trend trading there is no need to try to predict the market demand for soybeans and what factors drive it. Just treat them as any other time series.
The units used for agricultural commodities are usually a mass unit like pounds or a volume unit like bushels, but with various exceptions such as feet for lumber.
| Name | Point Value | Unit | Currency | Exchange |
|---|---|---|---|---|
| Azuki Red Beans | 2,400 | KG | JPY | TGE |
| Coffee | 37,500 | Lbs | USc | CSCE |
| Corn | 5,000 | Bsh | USc | CBOT |
| Cotton | 50,000 | Lbs | USc | NYCE |
| Lean Hogs | 40,000 | Lbs | USc | CME |
| Live Cattle | 40,000 | Lbs | USc | CME |
| Lumber | 110,000 | Feet | USD | CME |
| Oats | 5,000 | Bsh | USc | CBT |
| Orange Juice | 15,000 | Lbs | USc | NYCE |
| Canola | 20 | Tons | CAD | WCE |
| Rough Rice | 2,000 | Cwt | USc | CBOT |
| Rubber | 10,000 | KG | JPY | TOCOM |
| Soybean Meal | 100 | Tons | USD | CBOT |
| Soybeans | 5,000 | Bsh | USc | CBOT |
| Sugar | 112,000 | Lbs | USc | CSCE |
| Wheat | 5,000 | Bsh | USc | CBOT |
Hello Andreas,
How do you manage the liquidity risk in futures like Oats, Rice, Cattle, Coffee because the volume is really low (sometimes zero according to the site of the CME-groupe)
regards bart
Are you sure you’re looking at the active contract month?