What Went Right
Holding 6 – short on S2X mark to market
price in: 1532.00
today’s price: 1527.00
committed: $4625.00
gain/loss: $250.00
Ending balance as of 11-02-2012,
Position Value: $4875.00
Cash Available: $35821.65
Equity: $40696.65
Realized Gains: $445.00
This week I continue a short soybean contract. The soybean future market is difficult to predict. The soybean market fluctuates this week. The soybean price decreases consecutive days, a slight rebound fell sharply, with large volume and open interest synchronization. Chicago Board of Trade (CBOT) soybean future was down 2 percent on last Friday, rising for the end of three days.
Fortunately, I did not offset it early.
The 2012U.S.soybean production forecast is raised, as well as the U.S. dollar deppreciation. Informa Economics estimated the 2012U.S.soybean production raised from 28.6 billion bushels to 29.25 billion bushels and the soybean yield forecast raised to 38.6 bushels from last month’s 37.8 bushels per acre. Commodity brokerage firm INTL FCStone estimatedU.S.soybean production was about 29.59 billion bushels this year, much higher than estimated 28.49 billion bushels. The company estimated that soybean yield was adjusted from the previous 38.2 bushels per acre to 39.1 bushels.
Estimations of the two companies are higher than the estimation report released in October by the U.S. Department of Agriculture. In November 9, the Ministry of Agriculture will release the latest forecast. The U.S. dollar depreciation weakens the competitiveness of American goods in the international market, which also gives the pressure on soybean prices. Ministry of Agriculture announced last week’s soybean export sales is at 760,600 tons, higher than the estimated 557,0 00 million tons.
Many indicators verified what I did is right.
November 11th, 2012 at 12:34 am
Good going!