Page 11 - Futures Money Machine-Study Session #5
P. 11
Beyond The Basics
Seasonality…
Fall Seasonal Trend Example:
According to most seasonal charts, the corn market is generally at its weakest
prior to and during the harvest. These "harvest lows" generally occur between
September and November, the period when farmers across North America
harvest corn and deliver it to their local elevator. During the fall, there is also a
good deal of corn in storage that is sold in order to make way for a new crop. It
is during this time frame that longer-term traders will begin to initiate long
positions in the market using deferred contracts. For example, a trader may
begin buying May or July corn futures in November or December while prices
are at their lowest seasonally.
