According to the\u00a0findings posted on\u00a0WIKI-blog, I have deduced the expectations that prices of commodities would rise. Dry weather in the US that has severely damaged crops in the past month, depreciating US dollar over the past while, decreased yield in crop production are all factors that may most likely contribute to the increase in commodity prices.<\/p>\n
However, from Twitter announcements as well as agriculture articles, prices cannot increase in just overnight’s time – there would be a period where they adjust into the upward trend. So, I have decided\u00a0to take advantage of this incubation period in taking long positions on my bids before prices start to rise.<\/p>\n
Sept. 14th Wheat: long position for 2 contracts, bidding 688. Again, too low of an estimate as the market dipped till only 698.<\/p>\n Soybean – decided to observe a bit more as I read updates on a sudden increase in supply due to the occurance of a heavy rainfall in the US. Sept 15 Soybean: I concluded from all my readings and research that soybean production is going to increase because of an unexpected heavy rainfall in the US, and thus the price of soybeans would decrease. I bid for 2 long contracts at 1375, and had a loss of profit that day as it dipped even lower to 1356.4.<\/p>\n Wheat: From diagrams and data that illustrated the trend of wheat prices, I expected that the price would rise. I then took a short position for\u00a0\u00a02 contracts at 702. However, the highest price that it reached that day was 705.6, so I underestimated the peak to be a little lower\u00a0that day. As of this moment, I am holding long positions\u00a0with 2 contracts each\u00a0on corn and soybean at bids of 715 and 1375, respectively. I am also holding a short position on wheat with 2 contracts at 702. Currently, I am losing money in the game as my margin balance is now 22120. I have lost so far, 2880. So before I make any more decisions, I am going to hold my positions and observe the market movement, and then take action as to what I will do next.<\/p>\n References According to the\u00a0findings posted on\u00a0WIKI-blog, I have deduced the expectations that prices of commodities would rise. Dry weather in the US that has severely damaged crops in the past month, depreciating US dollar over the past while, decreased yield in … Continue reading
\n<\/strong>Corn: took a long position for 2 contracts, bidding 710. Unsuccessful as the lowest price reached that day was 716.4<\/p>\n
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\nUnfortunately, I estimated the prices to be lower than it really became, so I was unsuccessful in taking a long position to enter the market. I studied up on the trends of the pricing from the past few months, with aid from the findings of our technical analysis group. I decided to bid again on Wednesday.<\/p>\n
\n<\/strong>Corn: took a long position with 2 contracts at a bid of 715. Loss of profit that day as I bought it at a more expensive price – it reached a low of 700.2.<\/p>\n
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\nhttp:\/\/www.publicopiniononline.com\/ci_18849145?source=most_viewed<\/a>
\nUBC Wikiblog FRE 501 Course
\nhttp:\/\/wiki.ubc.ca\/Course_talk:FRE501<\/a>
\n<\/em>Twitter\u00a0FRE 501 Postings
\n<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"