ROAD AHEAD

Although, this week was a disappointment, I think I will continue to venture into the soybeans market to explore some of its intricacies. From what I extracted after interacting with some of my colleagues, it feels as if the soybeans market went through a lot of volatility this week. I think I will talk to my class mates to see the resources they have been consulting and would try to understand why the market behaved the way it did this week. At this moment, I am inclined to go short on the long term contracts (2013 contracts) because I strongly believe that the harvest is going to be well up to the mark next year due to the inflow of South American harvest. Also interesting would be to study the harvest patterns for soybeans, which I know are different due to climatic differences in major producing countries. Finally, and perhaps most importantly, I would have to read more about how the commodity prices are impacted with the devaluation or appreciation of the U.S. dollar. This was the most important factor behind my trade decision this week and I feel learning more about the correlation between the two can be beneficial for future trades.