Open positions from last week:
2 long wheat contracts
What an exhausting and un-dynamic week for me!! I’m sorry Andrew, but I must admit that I did not bid much this week…=(
Today, Thursday 5th, spent 4 hrs after class to understand and work on Jim’s assignment…it has used up all my brain power, so I have decided to not bid tonight and just leave my contracts as they are right now.
NOTE: my futures trading game sheet is EMPTY right now, so I can’t check my margin balance or anything. Will update blog once its fixed.
As of today, I have 2 long wheat contracts from last week, 1 long corn contract that I bade on the 5th, and 1 short soybean contract on the 6th.
Jim mentioned that he didn’t want us to recklessly bid and have too many open positions; I decided to just bid 1 contract for each commodity this week.
So this week, I finally decided to try and understand the exchange rate expert blog. They stated that the US currency is appreciating, which means US commodities would be expensive to other countries, so this would lead to a decrease of demand in US imports. Just based on this information, I would expect prices to decrease.
Last week Friday, US announced that they have an extra 200 million bushels of corn, which I thought would keep the prices down for corn. However, I also read that China will be demanding a record high amount of imports, so based on that, I assumed corn prices would rise; hence, bade long on corn.
Soybean was very simple, I based my assumptions on the wiki expert blogs. Demand group stated that there is record high production with decreased global demand, our group concluded that soybean supply will be increased because harvest just started, and finally, technical analysis group said that soybean market is still quite bearish. Thus, based on all these information, I decided to go short on soybean.
WILL UPDATE PROFITS WHEN GAME SHEET BACK TO NORMAL!!
Have a WONDERFUL long, long weekend everyone! Get a good rest and read those 80-paged M&E Reports =)
Happy Thanksgiving and have delicious turkey dinner and pumpkin desserts!!
Caroline
Hi Caroline, I think this is the fourth week…
lol…u are right…thanks!
Hey!!!Caroline!its not long long weekend!!i have no idea y its sat already!!!I didnt feel like i do something and now its sat!!!!Still hvnt started do homework yet…..due due due:(
haha i think ur bid strategy is quite close to mine so i understand urs well!!and also sometimes soo much work to do and forget to bid or dont hv brain power to bid!i still hv long contracts which i forget to offset so im keepin losing money and today we cant bid….
haha anyways!hv fun in ur “long long “holiday haha
Haha, Caroline~ The market didn’t change a lot this week. At least you don’t need to worried about your profits. 😛
It seems our Exchange Group didn’t explain the relationship between US dollar currency and the change of commodity price well. We will try to do a little bit better next week!
Lixi
hey lixi~ yeah, I’m not even sure where my margin balance is standing at right now…but oh well.
Anyway, my misunderstanding for exchange currency has been a long term relationship. I can just NEVER get it really clear in my mind how currency rates can affect prices….sometime is get it..sometimes i don’t…and your expert blog is doing quite well, i mean you guys can only say so much…cant write too much right.
but yeah….we have been in a long term battle.. hahaha..
but i will for sure ask you when i dont understand!
Caroline,
I completely understand where you are coming from when you mention you are using brainpower in to understand other things. In some respects I think it is OK not to bid every night. I do not and cannot bid every night, because I do not have enough knowledge on a day to day basis of how the market is changing. Also sometimes when you just leave your open position, you get lucky and the market works in your favour and you add something to your balance!
Goodluck in the coming weeks!
E
Hey Caroline, I think Jim’s assignment has used up our brain power too!!!i am still very confused about it right now and does not know how to make adjustment for the assignment (cuz i know that some of them are wrong)…aii…
I am sorry about the one that I twit on you this week about the China’s import…I think I stated it wrong…what I mean should be: when China’s import from the U.S increases, the U.S will have less supply on its domestic, so the supply will shift to the left and drive up the prices…however, this factor did not affect the prices a lot since the major trend of price is still bearish…im sorry that i confused uT^T…
Happy Thanksgiving and wish that you can make better profits next week^^