5th week: What I went wrong

commodity Price in Price out Gain /loss
W2Z

Sep-25

890.75

LONG

Oct-08

861

Short

-1488.50

C3H

Oct-08

741.75

SHORT

Oct-19

760.25

LONG

-926

W2Z

Oct-08

861

SHORT

Oct-11

890

LONG

-1451

W2Z

Oct-17

851

SHORT

Oct-19

872.5

LONG

-1076

 

What I went wrong

Last week, I took a break from trading. I had three short positions of corn and wheat on Oct 8th and Oct 17th. I expected that both wheat and corn price decreased because of decrease in demand and increase in supply. Winter crop was expected to be better in the area of the Corn Belt and the Southern Plains due to light rain. Also Russia, big supplier, decided that it is going to make easy of restriction on exporting. As well one of big consumer china was decreasing import by increasing its own production of corn. However, it turns out that both corn and wheat price increase. Even though I have one long contract having it beginning of trade, I lose money. I was long position when its price is too high. I was too scary to offset it. But I finally admit the large loss. I think I need to catch up current news what happen to grain market.

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