Wow, Trading Game is amazing…

It is quite a relief that I have got more understanding about the Trading Game this week. To some degree, I can earn money with my personal strategies, even though I got much loss on corn. As to how to get the success, that is most based on the assists of my mates and the lectures professor Jim demonstrated. I really appreciate for that.

Corn

During this week, Japan, the world’s largest importer, have bought 0.8 million metric tons of feed-grade corn for the shipment of October to December. In additional to importing 15 cargoes of corn (each of 55,000 tons) to South Korea for December-to-January arrival and importing 100,000 metric tons of corn to ONAB (Algeria’s animal feed agency) by the end of October, there are much more excess on the demands of corn. Therefore, I predicted the price of corn would go up, but actually it went inverse.

Soybeans

Even though
Chinese imports have increased, China is still meeting its demands for soybeans from Argentina rather than switching to the US like historical trends. In addition to the European debt crisis indicated that US soybean prices would fall, I thought the price of soybeans would decrease.

Wheat

Egypt, the world’s largest importer of wheat, bought  420,000 MT wheat from Russia. Moreover, Kazakhstan is planning to export over 10 million tons of grain. Also, India is going to lift its export ban. I predicted that US wheat price would go down because demand is being met outside.

These are what I learnt this week and the strategies I used. Hopefully, more money would come to my pocket…

There were two bids this week:

First bid  on 20 Sept:     corn (-2) at 696.3,  soybeans (1) at 1348.1,   wheat (1) at 681.9,

Second bid on 21 Sept:              corn (2) at 686.9

previous week contract is           corn(-2),    soybeans(1),    wheat (2)

Profits(corn)=(-2)*50*(692-690.2)+(-2)*50*(696.3-690.2)+(-4)*50*(690.2-685.6)+2*50*(686.9-685.6)+(-2)*50*(685.6-638.4)=-6300

profit(soybeans)=1*50*(1355.4-1338)+1*50*(1348.1-1338)+2*50*(1338-1258)=9375

profits(wheat)=2*50*(688.2-673)+2*50*(673-674.6)+1*50*(681.9-674.6)+3*50*(674.6-640.6)=6825

total profits=-6300+9375+6825=9900

net balance=25215(previous week net balance)+9900=35115