During the past one week, I obtain positive profit from long a corn position –837.5 in total. But gain a bigger lost in wheat – 1537.89. The net profit this week is negative, again.

The right things I did in the past week is long a contract of corn. During the past week, price of corn increase 5 percent. I made this prediction a week ago when the corn price dropped at the end of a week. After I check the historical data in a year ago, the consumption increase with time passing at the same period. Price also shows an increased trend. And the profit of corn showed that my prediction is correct.

Unfortunately, I made a wrong decision for short a wheat. And because of larger decrease in wheat price, the positive profit of corn is not big enough to cover the lost in wheat. At the beginning of this week, I predicted that the price of corn would go up. And then the wheat price would go up. But the market may need some time to reflect. What’s more, the wheat future market shows weak in past weeks. I thought the price would go down and then go up slowly.

I could not imagine that the market reflect faster than I though. And because of the highly correlation between wheat and corn – the result of our assignment, the wheat market rise very quickly and shows a “jump up”.

Actually, if I did a good research on historical data of wheat, I could get rid of this big lost.