Now what? What position should I take? How do I increase my make believe money?
I’ve been trading wheat so most my research has been for wheat. Most news I’ve been reading is that prices are going to be determined by exports. Increased exports would mean that production in other wheat producing countries has decreased. Therefore, again, Australia’s weather conditions and now seemingly Argentina will play a role. If conditions continue to be bad, then I would expect prices to increase as demand for exports increase as well. Once news hits of increased exports, expect prices to rise (http://online.wsj.com/article/DN-CO-20121102-009515.html).
Going long would be a good idea then.
Once more it seems as if weather will play a significant role. If exports is the issue, exchange rates will also play a role. By how much I am not certain but it would be a good idea to take a look at how economies are doing world wide.