Grain Futures Markets

If the grain futures markets are open, then so are we! Our team of dedicated market strategists are more than happy to provide our market outlook and proprietary grains research to all current and prospective market participants. Whether you’ve traded grain futures before, or are brand new to the markets, we are here to help. Call in to our trade desk at (312) 858-7305 to receive the latest developments on the happenings of the grain markets. 

Yes. Each grain contract traded through the CME Group has both an initial margin requirement and a maintenance margin requirement. In order to enter a position, an account holder must have adequate risk capital allocated in their account to meet the initial margin requirements for the contract of interest. In the case that an account holder has an open position, and their open equity passes through the maintenance margin requirement, they will have to post additional risk capital in order to meet the initial margin requirement.

There are a myriad of different types of active market participants in grain futures. Market participants vary tremendously in size and interest, but all participants are essential in the price discovery process. Typically, market participants are bundled into one of two categories: speculative or hedging. Speculators range in size from individual traders all the way up to institutional funds. The hedging side is a little more intricate, and can be broken down in accordance with each individual grain’s supply chain. On the production side, farmers and ranchers are active participants usually looking to mitigate their downside risk. Intermediaries like grain elevators, ethanol production facilities, and soybean processing facilities, have exposure on both sides of the market as they must purchase the physical grain, and then ultimately sell a value-added product from that grain. End users, like food manufacturing enterprises, look to mitigate their upside exposure as to minimize their net-commodity expenditures. 

Every individual has a unique personality, and perspective. Similarly, every trader has their own personality and opinions on the markets. In order to make the most out of trading grain futures, one must define their goals ahead of time. Are you looking to trade the markets on an active, daily basis? Or are you looking to test your hypothesis over an extended period of time? Ultimately, traders must determine their objectives, market preference, and risk tolerance ahead of time. If you’re looking to jump into futures trading for the first time, our team of Sr. Market Strategists are available to help you define these parameters, and help you build personalized strategies off of those specific factors. Reach out to us – we will be happy to provide you with a complimentary free trial, and supplement that with proprietary grain market research

There is an old adage that says, “Corn is King”. While it’s true that corn contracts have historically had the highest volume and open interest of the grain markets, the markets have become increasingly more dynamic. Other contracts like soybeans, soybean oil, soybean meal, wheat, and oats have grown in popularity with the proliferation of electronic trading. All clients at Blue Line Futures are equipped with both web and mobile trading platforms, in addition to our market research. Whichever market you’re most interested in,