Corn

[billyjoe]

Any idea how I can best invest in the corn market ? I'd like to do it through my internet IRA accounts , but have no idea about symbols etc.
----------billyjoe

[DSteckler]

Open a futures account. Why do you want to trade corn if you don't even know the symbol? Do you really think trading agricultural commodities is that easy?

[IIC]

Open a futures account. Why do you want to trade corn if you don't even know the symbol? Do you really think trading agricultural commodities is that easy?

Eddie Murphy and Dan Akroyd did well in Trading Places...IIC

[DSteckler]

We're back, Mortimer!

[lemonjello]

The CBOT trades mini futures which require less margin for the retail client.

http://www.cbot.com/cbot/pub/cont_detail/1,3206,1381+14399,00.html

Lind Waldock is a good discount broker - allows you to trade futures in an IRA. They also have broker-assisted accounts for newbies. (I have no vested interest, just sayin)

http://www.lind-waldock.com/

Good luck. Too bad you didn't get that EtOH earlier. I'm looking at Coffee now.

Any idea how I can best invest in the corn market ? I'd like to do it through my internet IRA accounts , but have no idea about symbols etc.
----------billyjoe

[New-born baby]

Cutthroat business

Open a futures account. Why do you want to trade corn if you don't even know the symbol? Do you really think trading agricultural commodities is that easy?

BillyJoe,
Trading commodities is a very risky business. For example, there are no options, no dividends, and no future profits to enhance the share price should you be on the wrong end of a trade. Buy and hold won't work: the contract has a definite expiration date. How would you determine which side of the trade you'd be on? Watch the weather to see if it is raining in Iowa, Nebraska and Illinois? Remember, they grow it in South America, too.

As a friend, I'd say you be better off buying a Canroy and earning sweet dividends every month. I can hear the gears grinding in your head: Ethanol. You probably read where Ford said they are going to put more emphasis upon ethanol cars instead of hybrids, so it sounds reasonable. But every commodity trader I have ever heard of is an expert at TA. And I thought you were a FA man. Isn't that right?

As a real friend, I'd say trading corn is about the poorest way to go as the market is so tight, that the margin for error is razor thin.

There is one thing you could do: hire a CTA. Call "Iowa Capitol Management" and for $75 per month, they will trade your $10,000 account. No guarantees, of course. But I like them, and I think they are pretty good at what they do.

[DSteckler]

<< For example, there are no options >>

Yes there are:

Options

Size - One CBOT Corn Futures

Tick Size - 1/8c/bu

Daily Price Limit - $0.20/bu

Strike Price - $0.10/bu

Contract Months - Dec, Mar, May, Jul, Sep

Last Trading Day - Last Friday preceding the first notice day of the corresponding futures contract by at least five business days.

Expiration Day - Unexercised options expire at 10 a.m. on the first Saturday following the last trading day.

Trading Hours - 9:30 a.m. - 1:15 p.m.

Ticker Symbol - CY- call; PY- put

[lemonjello]

Van Down By The River

I should have included the standard disclaimer:

YOU COULD LOSE ALL YOUR MONEY AND EVERYTHING ELSE YOU OWN. YOU COULD END UP LIVING IN A VAN DOWN BY THE RIVER !!!!!!!!
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Remember you don't have to use the minimum margin on anything. Margin = risk same as stocks. Only with futures you get even more leverage. Or use options - the market seems pretty liquid.

http://www.forbes.com/prnewswire/feeds/prnewswire/2006/06/15/prnewswire200606150943PR_NEWS_B_MWT_CG_CGTH022.html

Also, the % of hucksters in the futures biz is probably close to the % in the stock biz, if that's possible.

One thing anyone can try without risking money is to paper trade contracts with one of the brokers - I think LW charges $15/mo -first month free. Other brokers might give you totally free access to paper trade w/their software. I think it's definitely worth paper trading for at least 6 mos. before you even think about using real money. BTW, be aware they will probably try to 'sell' you while you paper trade.

Good luck!

The CBOT trades mini futures which require less margin for the retail client.

http://www.cbot.com/cbot/pub/cont_detail/1,3206,1381+14399,00.html

Lind Waldock is a good discount broker - allows you to trade futures in an IRA. They also have broker-assisted accounts for newbies. (I have no vested interest, just sayin)

http://www.lind-waldock.com/

Good luck. Too bad you didn't get that EtOH earlier. I'm looking at Coffee now.

[DSteckler]

<< Remember you don't have to use the minimum margin on anything. >>

Yes you do. For example:

CORN C CBOT $540 $400
CORN, MINI (1,000 bu.) XC CBOT $108 $80

The first value is the initial margin and the second is the maintenance margin.

Lemonjello, why did you say you don't need to use margin when your earlier post had a link to the margin requirements?

[lemonjello]

Finance 101

Very simple -

You can use anywhere from minimum margin to NO MARGIN!

Yes, Weedhopper, the brokerage will actually allow you to put up as much cash as you want above the minimum margin.

It's amazing how that works isn't it?



Any other questions?

<< Remember you don't have to use the minimum margin on anything. >>

Yes you do. For example:

CORN C CBOT $540 $400
CORN, MINI (1,000 bu.) XC CBOT $108 $80

The first value is the initial margin and the second is the maintenance margin.

Lemonjello, why did you say you don't need to use margin when your earlier post had a link to the margin requirements?

[DSteckler]

No margin? You're going to put up the full cash price for 5,000 bushels of corn?

You really don't understand how commodities trade, do you?

[jiesen]

No margin? You're going to put up the full cash price for 5,000 bushels of corn?

You really don't understand how commodities trade, do you?

Maybe his grand plan is to open a few dozen Rubio's and cut out the middleman by making all the tortillas himself!

[IIC]

I don't think you should use margin...I think you should have 1,000 bushels of corn delivered to your house...Put up a sign in your Front Yard that says:

Buy One Ear...Get One FREE!!!...We "listened" to what our customers wanted

You could also give away a free recipe book w/ every purchase..."1,001 Corny Things To Do With Corn"

Keep us posted on how it works out...IIC

[DSteckler]

Never been to Rubios but I LOVE fish tacos. There was a place here in St. Louis ("Flaco's Tacos") that made the best I've ever tasted but they went out of business years ago. Tried a few places in San Diego but they didn't compare.

[jiesen]

Never been to Rubios but I LOVE fish tacos. There was a place here in St. Louis ("Flaco's Tacos") that made the best I've ever tasted but they went out of business years ago. Tried a few places in San Diego but they didn't compare.

Rubio's is popular around here, but definitely not the best place to get a fish taco. Fins has much better fish tacos, but there's only one Fins left now (used to be three). The best place to go, probably, is Wahoo's. There are a bunch of those, and they serve much higher quality food, and offer more variety than Rubio's, for about the same price. Plus, I have to plug Wahoo's because my high school buddy is their controller.