The grain and oilseed commodity markets include trading in corn, oat, rough rice, soybean and wheat products and, like other commodity markets, this is where raw or primary products are exchanged with standardized contracts for the future delivery of the physical materials.
Experts suggest that commodities equal only 3 to 10% of your total investment as they can be riskier than other investment options. However, by mastering one piece of the commodity market, such as grain futures and oilseed commodity, you stand to be more effective and profitable.
Before you break into the grain and oilseed commodity markets:
1. Monitor news and changes in the grain commodity markets to stay educated and informed.
2. Check grain future market trade indexes daily to stay on top of the changes in worth.
3. Use a broker or dealer to help you trade grains options more efficiently.
Action Steps
The best contacts and resources to help you get it done
Learn about grain future trading before purchasing anything
Follow market trends, prices and services using news articles, charts and other research methods. The more you learn about the oilseed and soybean futures market, the more profitable you can hope to be when you do make the choice to invest. Take advantage of wealth of information the Internet offers you to find the current prices, challenges and plans for the future of oilseed and grain commodities.
I recommend: Visit the
US Commodity Futures Trade Commission website to find new regulations, information analysis and links to popular reports. Read the
RJO Futures 10 Dos and Don'ts of Trading Futures for a general overview of the futures market. Use
Statpub.com Oilseed Market News and
Food Business News to find the latest information about grain commodity markets.
Develop a grain commodities trading plan
Consider your budget when investing in grain and oilseed commodities. Decide how much you'd like to invest and stage a plan to do just that. Use analysis reports, current prices and projections to come up with a strategy and timeline. Start small and allow your investment to run the course of your timeline before making any harsh changes.
I recommend: Get a
free grain forecast and information about trading software from Market Technologies. Follow the
USDA grain and oilseeds analysis and use
Wave59 trading software as a grain and oilseed commodities guide for assistance in planning your investment.
Trade online or partner with a grain futures dealer or broker
If you have experience in trading stocks and futures, consider saving money by investing online without the assistance of a broker. Implement your soybean futures and grain investing plan yourself, taking the time to check indexes and read news to stay on top of your money. If you don't have the experience or time necessary to do your own investing, hire a broker to do the research and hard work for you.
I recommend: Use
FuturesKnowledge for commentary on today's grain research and to research brokers online and in your home area.
Futures Brokers Directory and
TFC Commodity Charts also offer assistance in finding the right brokers to make your investing in grain futures more profitable. Contact firms like
Hills Capital Management to implement your investment plan.
Tips & Tactics
Helpful advice for making the most of this Guide
- Chart and save your daily, weekly or monthly progress investing in grain and oilseed commodities to see changes and trends. Use a spreadsheet or Google finance portfolios to track the market changes.
The official source of Grain and Oilseed Commodity Markets is
the Grain and Oilseed Commodity Markets page at Business.com