Week 4
by jose ramos bouille
Hi!,
This fourth week trading was a hard one!. Almost all of the commodities we are allowed to trade we’re bearish, so it was hard to know which one should we bet for.
I consulted some websites about the futures contracts returns like barchart to see how the contracts were trending. Moreover, I also looked at the historical prpice charts as I always do.
However, as I said it was difficult have strategy for the commodities we need to trade. One possibility of the falling of almost all of the agricultural commodities was the USDA crop progress report released on Monday October 19th in which it revealed that most crops are expected to have a strong yield in 2016.
I went long a contracts of wheat because I saw on barchart that some contracts were trending up, but the day after I was having big losses. Also, I went long on sugar and cocoa, but had the same result as with wheat. Therefore I went short in all of those contracts.
The only commodity in which I was fortunate enough to make profit this week was with orange juice, although it’s been modest. I went long on that because I saw that the contract I already had were still trending up.
José