Yesterday, I submitted 7 long corn orders.
I did this for 2 reasons. First, I firmly believe that the USDA report has put a floor on corn market for the next week, despite the embarrassed export sales①. I don’t think demand could vanish in a short week. I see the export sales shrink as an temporary adjustment. Second, after the price dove on this Friday,the profit-taking time was supposed to be over.I’m looking forward to a technical bounce next week.
That is to say,I have deeply confidence on corn price.Even if the price might goes down for the first one or two days next week,there is no possibility to form a downward trend in corn.
As for soybeans,I don’t want to get involved next week,unless some important news shows up,because soybeans price is too volatile and there hasn’t much solid imformation to help make the judgement, I think.
So, strategy for next week:
1. Holding 7 long corn
2. If the price goes down in the first one or two days, go additional long contracts and wait till the bounce come
3.Keep an eye on soybeans
Reference:
I agree with your decision, Mike. Soybeans have been unpredictable, and the uncertainty remains even after the release of the USDA report. Even though lots has been planted in south america, I believe it will be important to be mindful of the weather there over the next few weeks.
Moreover, I also went long on corn before the crop report because all the opinions that I read before the release of the report were pessimistic about harvests and expected prices to rise. Good luck for your trading strategy (but go easy on all the research; we have a midterm this week!)
Also, thanks for your help regarding the crop report last week.
Hi Ishrat!Thanks for comments! And sorry for late reply…]
Yeah,finally, midterm is over! I’m back in the game from this week. So, welcome comments on my blog again! I’ll try my best to make my blog worth reading!
Mike
Great work! Thanks for sharing.
Thank you Yijeong! I’m doing all I can to make more money!!!