Page 10 - Futures Money Machine-Study Session #5

Beyond The Basics

Seasonality…

For example, Corn futures, traded at the Chicago Board of Trade, tend to trade according to a
loose seasonal pattern. These trends occur mainly due to the availability of corn in the cash
market at certain times of year. Any farmer or professional grain trader knows these trends
and likely uses them in their trading. Traders often use this knowledge to back up an existing
notion or indicator. For the novice grain trader, this knowledge is relatively easy to
understand and apply, and in this article, we'll help you understand these crops from seeds to
harvest.

These guidelines do not work in every year or under every circumstance. The guidelines can
help to indicate market direction when used in conjunction with other indicators. In general,
most traders will use these indicators to help confirm another signal, either fundamental or
technical. Traders should not trade using seasonal trends alone, as outside market factors
can have sometimes have a major impact on them. Still, this knowledge is a must-have
weapon in any grain trader's arsenal and is one of the most basic components of trading in
the corn market. Any broker with a working knowledge of the grain market should be able to
supply traders with seasonal corn charts, which should help to supplement this article.