into or absorbing currency from the economy, thereby affecting the
corresponding interest rate-related futures. Some examples of these
futures include 30-year bond, S&P 500 index, NASDAQ index, gold,
copper, Euro, and Yen. As you can see, you could then have subcategories
such as precious metals, foreign currencies, etc.
These include commodities such as oil, natural gas, and their byproducts.
The oil futures can for example be affected by OPEC's (the
Organization of the Petroleum Exporting Countries) decisions to
increase or decrease oil production levels. Some examples of these
futures include home heating oil, natural gas, and gasoline.
This category, which is sometimes referred to as Agri, deals with
products harvested from earth. As you might have determined, natural
events play an important role in the supply/demand equation of this
category. Grains, fruits, meats, and dairies and their by-products are all
part of the Agri commodities. Some examples of these futures are
coffee, wheat, corn, cotton, orange juice, beef, and yes, the famous pork
bellies. (FYI, pork bellies are used to produce bacon.) Natural
phenomena as well as shifting demands have tremendous impact on
this sector. For example, hurricanes, earthquakes, or drought all
adversely affect the farming industry, which in turn puts pressure on
livestock feed,which in turn shrinks meat supplies driving up the future
prices of pork bellies.
Contract Market Data
We already learned the futures contracts come with inherent
specifications. These include the type of the underlying commodity,
quality, quantity, and delivery date, among others. Contracts also have
daily data associated with them as they get traded on various exchanges. …