I am starting to investigate futures spread trading and I want to start with the grains primarily although I might also look into cattle. I've been reading several books (Joe Ross, David Carli, and a few others). I am currently using Spreadcharts as an analytical source. I use Ninja Trader as a broker for my regular trading but they do not offer spread trading as far as I know. I know you can use an indicator for it but I have heard they do not offer SPAN margin. I am going to start with my ThinkorSwim account since they do offer span margin and have charting for spreads.

My question is can anyone recommend a good course to help me understand the grain markets better and spread trading them? I took a pretty good Udemy course that covered the basics but I would like to learn a little more. I am currently just paper trading the suggested spreads from Spreadcharts. I am curious if anyone has a suggestion for education.

Sorry I can't help with it but I am super keen to learn that topic as well.

If it is not a big ask would it be possible for you to provide the course you think have value to look at. May be other resources as well.

14 years ago I was trying to a Prop shop. they were doing spread trading AUD bonds vs USD bond.

They were watching DOM's.

Would be nice if spread traders share their knowledge.

'Grain Markets and other stuff'

This is a daily view on the US grain markets, ( about 5am each day), more for farmers and grain merchants. Its not a 'trading' podcast but a view of the market with stuff like how the harvests are doing around the world etc etc. How are Brazilian corn plantings progressing, how much rain is expected etc. Stuff that affects the market on a farm price basis...

might be of interest for background info...

ragic 

'Grain Markets and other stuff' This is a daily view on the US grain markets, ( about 5am each day), more for farmers and grain merchants. Its not a 'trading' podcast but a view of the market with stuff like how the harvests are doing around the world etc etc. How are Brazilian corn plantings progressing, how much rain is expected etc. Stuff that affects the market on a farm price basis... might be of interest for background info...

That's GREAT! I am going to subscribe because any information on the crop conditions will help. I really appreciate your sharing this with me.

tr8d3r 

Sorry I can't help with it but I am super keen to learn that topic as well. If it is not a big ask would it be possible for you to provide the course you think have value to look at. May be other resources as well. 14 years ago I was trying to a Prop shop. they were doing spread trading AUD bonds vs USD bond. They were watching DOM's. Would be nice if spread traders share their knowledge.

I took a basic Udemy course that explains the basics- https://www.udemy.com/course/spread-traders-crash-course-trading-commodity-futures/learn/lecture/14319260?start=1350#overview

I have also found David Carli's books on Spread trading useful. I have read "Commodity spread trading - The correct method of analysis. Also I read Commodity Spread Trading - Take Advantage of the Seasonality.

Joe Ross has a good book on spreads "Trading Spreads and Seasonals" https://www.tradingeducators.com/books/trading-spreads-and-seasonals

I have also thought "investing in Wheat, Soybeans and corn" by by Wm Grandmill useful. Another book that has a lot of information on how the farming/storage and marketing of grains works is "Mastering the grain markets- How profits are really made" by Elaine Kub.

https://app.spreadcharts.com/ - This is one of the analysis sites I use. If you go there they have a video tutorial at the bottom left of the page and they go over the app plus hove they evaluate a trade.

https://www.mrci.com/web/index.php - Another great research site.

Of course you want to monitor the WASDI reports and other various USDA reports specific to what you trade.

The best person here to discuss spreads is @SMCJB . He is a former professional energy trader and does a lot of personal trading now, including all kinds of spreads, including many off-exchange spreads.

Unfortunately, he has been around here a lot less as this forum slowly fades into obscurity (except for threads about "pay for simulator" trading via mis-named "prop" firms ).

Another source for spread info is mrci.com. They offer seasonal type tools (such as in the past 13 of 15 years the Dec/Jul Wheat spread has gone up from Dec 1 to Jan 12.) Interesting stuff, although that type of trading is not as profitable as it once was (you can see their track record here: https://www.mrci.com/results/mrciport.php)

Most retail platforms do not support spread trading or backtesting, which is a blessing and a curse. This means it is much harder to analyze, but at same time less prospective traders are looking at the type of trading, so better chances of finding alpha.

One word of caution that most new spread traders make: be careful when writing spread indicators (like the price or July Wheat minus the price of December Wheat, plotted as OHLC difference). If you use that for analysis, your analysis will be wrong. You want to plot the Exchange July/Dec Wheat signal, which most platforms do not readily offer.



Good Luck!

kevinkdog 

The best person here to discuss spreads is @SMCJB . He is a former professional energy trader and does a lot of personal trading now, including all kinds of spreads, including many off-exchange spreads. Unfortunately, he has been around here a lot less as this forum slowly fades into obscurity (except for threads about "pay for simulator" trading via mis-named "prop" firms ). Another source for spread info is mrci.com. They offer seasonal type tools (such as in the past 13 of 15 years the Dec/Jul Wheat spread has gone up from Dec 1 to Jan 12.) Interesting stuff, although that type of trading is not as profitable as it once was (you can see their track record here: https://www.mrci.com/results/mrciport.php) Most retail platforms do not support spread trading or backtesting, which is a blessing and a curse. This means it is much harder to analyze, but at same time less prospective traders are looking at the type of trading, so better chances of finding alpha. One word of caution that most new spread traders make: be careful when writing spread indicators (like the price or July Wheat minus the price of December Wheat, plotted as OHLC difference). If you use that for analysis, your analysis will be wrong. You want to plot the Exchange July/Dec Wheat signal, which most platforms do not readily offer. Good Luck!

I use Ninja trader for outright futures but they do not offer spread trading. They do have a third party indicator that might work for spreads but I have heard rumors they do not offer SPAN margin. If true Ninja is useless as a platform for spreads. As I am learning I am planning on using thinkorswim for paper trading which seems like it would work. I am going to look into platforms like Stonex or similar if I decide to proceed to live trading.

Wartrace 

I use Ninja trader for outright futures but they do not offer spread trading. They do have a third party indicator that might work for spreads but I have heard rumors they do not offer SPAN margin. If true Ninja is useless as a platform for spreads. As I am learning I am planning on using thinkorswim for paper trading which seems like it would work. I am going to look into platforms like Stonex or similar if I decide to proceed to live trading.

I would ask @NinjaTrader about their SPAN margin policy, just to get the words from the source.

kevinkdog 

I would ask @NinjaTrader about their SPAN margin policy, just to get the words from the source.

I heard this from a Ninja trader vendor who claimed he has asked. I will ask on the Ninja Trader support forum just to be sure.

Wartrace 

I heard this from a Ninja trader vendor who claimed he has asked. I will ask on the Ninja Trader support forum just to be sure.

You should ask [email protected] to be sure, straight from the source