What do continuous beans and corn mean in the futures market?
Re-post a post: Because most futures contracts have a delivery period (and there is no deadline, such as LME March copper, which will be explained later), the longest contract period usually does not exceed one year. In order to facilitate research, many trend quotation systems have set up "continuous" contracts. For example, Shanghai Copper Co., Ltd., Shanghai Copper Co., Ltd., Shanghai Copper Co., Ltd., maybe corn Co., Ltd., soybean Co., Ltd. and so on. The continuous contract here does not refer to a specific contract, but a change. For example, XX Co., Ltd. is the first trading contract after the current delivery, XX Co., Ltd. is the third trading contract after the current delivery, and so on. As for why this is set up, according to the long-term trend, traders find that the futures contracts that are closest to the current delivery month one month and three or four months later are the closest (most representative) to the spot forecast and the most active. Therefore, this kind of contract market is constantly studied (throughout the year), so the trend economic data such as "XX continuous", "XX even three, even four" are set up. As for LME (International Metal Exchange) March copper contract, it is a continuous contract with no delivery period and no specific delivery date. Traders can choose any date to go through the delivery formalities. Its quotation is only used as the basic standard of insurance premium on delivery.