Seasonality | MAY 2001
Seasons In Soybeans by Scott Barrie
Tracking Risk Premium Seasons In Soybeans Year after year, the Earth turns around its axis, producing trading opportunities you can exploit with technical tools. by Scott Barrie Seasonality and technical analysis can be a powerful combination. Traders who understand the natural supply and demand cycles in the commodities markets can anticipate market turns more precisely, helping them isolate good trading situations and avoid poor ones. Here’s a practical application: tracking risk premium in the soybean market. Soybean prices change based on the perception of future supply. The amount of change is called risk premium. When future supply is perceived to be limited, futures markets tend to build risk premium into prices; thus, prices are higher than would be expected based on present supply and usage patterns. As the perception of future supply becomes clearer, prices return to a lower level more consistent with supply and usage patterns.
by Scott W. Barrie
Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
has had over 1,226,237 subscribers from 174 different countries.
37,000 Page Traders’ Archive for $89.99
To continue reading, sign-up for trial access to Traders.com and the S&C Archive — 37,000 pages of trading ideas!
After verifying your email address, you will have limited access to the S&C Archive, as well as access to a Digital Edition of S&C, and access to Traders.com Advantage and Working Money for 30 days.
Not a subscriber to Technical Analysis of
STOCKS & COMMODITIES magazine?
Click
here to subscribe, or request
a trial subscription.
Log-in now to view articles from the S&C Archive.
Your Subscriber ID is located at the top of your magazine label, highlighted here in red.
Your last name can be found on the second line, highlighted here in blue.
*If you have a company name on the label, that can also be used. It will appear below your name on the label.
If you do not have a Subscriber ID on your label, you can find it on your statement or renewal form.
For help locating your Subscriber ID number, please call us at 1-800-832-4642 or send an email to Survey@Traders.com. If sending an email, please include your name and mailing address.