On Mon, Aug 26, 2013 at 4:18 AM, Borg Alexander <[email protected] > wrote:
> No. As I said, for whatever reason, I have seen that the September > contracts for the grains are never the most liquid contracts, when you look > at it on a daily basis. > > Yes, indeed. I've just verified that in TWS. I found the explanation for it here: http://lessons.tradingacademy.com/article/will-real-front-month-contract-stand-up-please/ "The September contract month in Corn is usually not a heavily traded contract and is normally skipped over by speculators and hedgers alike. By skipping over I mean that once the July contract rolls over the volume does not go into the next contract, September, like many other Futures contracts would. Instead the majority of volume goes directly to the December contract. The reason for this is that during the spring when producers were hedging their crop they knew the crop would not be harvested until October or early November. This would make hedging in the September contract a risk because the crop would not be available for delivery and if they were not hedged coming into the December delivery time there is always a chance of an early frost that could damage their crops. The September contract does have volume trading, but you will notice how the majority of volume and open interest resides in the December contract. The professional and commercial traders are trading the December contract. " -- You received this message because you are subscribed to the Google Groups "JBookTrader" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. To post to this group, send email to [email protected]. Visit this group at http://groups.google.com/group/jbooktrader. For more options, visit https://groups.google.com/groups/opt_out.
