It is expected that US Wheat exports will pick up as we move towards the end of the year because global wheat prices are expected to rise worldwide and demand from North Africa and the Middle East rises (1). I will be keeping this in mind as I make future trades in wheat. I expect weekly fluctuations, but I will do some more research before adopting a longer term long position in Wheat.
Also, this week’s trade was a great learning opportunity for seeing demand and supply forces at work. For instance, I realized that although lower supply had been keeping prices of corn high, at a certain price level, demand would fall, causing prices to trend downwards. For corn, an analysis I read informed me that if the price of corn gets up to $8, then demand is lost. But if price comes down to $7 or lower as a result of this, then at this price level, demand will exceed the supply that is currently available, driving prices up again (2). Therefore, for my future trades in corn, I will be looking at this window between $7 and $8 to determine the effect of demand on prices, and make a trade accordingly.