This week my equity is $$38314.42, $5000 higher than the equity of last week. Last month, I went long 2 contracts on wheat on September 24^th and went short this week on October 1^st. I earned $1026.5 each. I also went short 2 contracts on wheat last week on September 28^th last week and went long this week on October 2^nd. I earned $849 each.

The reason of doing this is quite simple. The price of wheat went up on October 1^st because of the report written by USDA last Friday, the storage of wheat is less than expected. That will make the wheat price higher.

The price of wheat went down on October 2^nd. This is mainly because the forecasts were putting this year’s grain maize crop at 3.6 million tonnes which would be up by a dramatic 1.2 million tonnes on last year and so provide the local market with a sharply increased volume of feed grain supplies. The prospects of this huge increase in maize production were restraining trade in the market this week. The price of corn will decrease in long term and it will make the wheat cheaper in long term. I’m very happy that I made the right decision last week. The price of wheat will mainly go down next week. However, the price may went up slightly in the first few days.