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Strategies & Market Trends : Grain Futures Trading -- Ignore unavailable to you. Want to Upgrade?

To: wiley murray who wrote (265)	11/28/1998 8:46:00 PM
From: nicewatch	Read Replies (1) \| Respond to of 645

The cash is supposed to represent better the physical market and its underlying supply/demand. In some commodities, the near contract is the cash market... but in grains, there are physical marketplaces, elevators, and all that good stuff. Obviously, the cash and futures are closely linked... but there are subtle differences. What I like to do is compare the near contracts to the cash. For example, I observed in the past year that if the cash makes a new high while the futures do not... that is a bearish divergence for the futures. The opposite is true for lows. Unfortunately, until I get the cash dataset to compare to my futures database I can't do any serious analysis of the interrelationship. This is an area of analysis that I have limited experience in, so if anyone out there does it and would like to share feel free. FWIW. later Frank