1. Result

(1) I got a realized loss of $1363.50 by offseting the Dec. Corn(C2Z).(Price in:768.25;Price out:741.00;)

(2) I gained $400 this week by taking one short on Soybeans.(price in:1572.25;last trading day’s price:1564.25)

Final Equity last week:$39000.50;  Final Equity this week: $39036.80

Final gains this week:$36.30

2.What Went Right

(1)Went short to offset Dec. Corn(C2Z)–Right

I went short to offset my contract immediately after C2Z price decreased from 748.25 to 744.75 on Thuesday,which proves a very smart move,for the next few days experieced a dramatic fall in C2Z price,digging at 705.00.

The main reason for this drastic drop may be the announcement of  underestimate of corn production addressed by USDA previously.

But the C2Z price bounced on Friday, locking up the limit up at 756.20,which was caused by a new release of the USDA crop stock report on Friday. It seemed like traders had overestimated the stock level.So the corn price soared on Friday.

(2) Went a short on Mar.2013 Soybeans(S3H) –Right

I did this for the same reason as I shorted on Corn.I anticipated a downward trend for Soybeans due to the USDA annoucement of underestimated production. And there it went. The price were down to 1524 on Thurday.While on Friday,because of the surprising stock report,it turned back to 1564.

3. Brief Comment

To sum up, I’m basically satisfied with the trading result this week.There is no doubt that USDA’s stock report caught most traders,including me,off guard .But,after all,that’s something for which you should not blame yourself.

References

http://www.agweb.com/article/stocks_report_delivers_september_surprise/

http://www.cmegroup.com/trading/agricultural/grain-and-oilseed/corn.html

http://usda.mannlib.cornell.edu/MannUsda/viewDocumentInfo.do?documentID=1079