I was not able to get into a trade during this week due to assignments and presentations for my other courses. But, I put my order in on Friday night and I will elucidate my strategy here. I will be going long with two contracts for December corn. I have also gone long on two soybeans contracts for January. Both soybeans and corn futures were on a rise near the end of the week and are expected to follow this trend. The major reason for the increasing futures has been the increase in U.S. exports demand. The exports have gone up mainly due to the news of bad weather in South America (specifically in Argentina). Earlier in the year, Argentina was gearing up for a record high crop and that was driving the prices down for a while. Secondly, the domestic demand in U.S. has been steadily tightening which has caused the prices to go up. It is also believed that the tightening domestic demand will push US exports higher in 2013.1 It seems we have come full circle with corn markets. The commodity futures are now beginning to look a little predictable. They are either dictated by official numbers (from USDA or others) or by weather patterns. I will update the results of my trade by Monday. **
** Update: So I went into trade and as it turns out my orders were delayed and so instead of winning I lost a few hundred dollars. But, I had made the right prediction and the prices did go up for both corn and soybeans
Details for this week:
(1) Dec (C2Z) – LONG: Contracts: 2, Gain/Loss: -137.50
(2) Dec (C2Z) – LONG: Contracts: 2, Gain/Loss: -137.50
(3) Jan (S3F) – LONG: Contracts: 2, Gain/Loss: – 337.50
(4) Jan (S3F) – LONG: Contracts: 2, Gain/Loss: -337.50
Equity (Last Week): 43630.92; Equity (This Week): 42680.92
References:
1 http://www.thefinancialexpress-bd.com/index.php?ref=MjBfMTFfMjVfMTJfMV85MF8xNTEwNDU=
Roson
November 26, 2012 — 9:01 am
Hello Ahmed,
I agree with you. The wheat, corn, soybeans since markets look bullish since last week due to the weak US dollars and increasing export demand. The not so desirable weather in the other major crop producing countries seems to be playing a part in the recent while as well.
Have you tried with the technical analysis? It’s pretty interesting. =]
Have fun!