Next week, I’m still going to focus on wheat. As we know, as the harvest of wheat is coming to an end, the trend of wheat price is increasing. However, there are still some news can affect the price of wheat in short run. I believe the price will go up in long run, but may be affected by other news in short run.

First of all, price of corn fell last week, pressured by the drop in soybeans, while wheat was up slightly, but well below its daily highs due to a round of profit taking. Concerns about tightening global supplies due to adverse weather conditions in key growing areas supported wheat. Wheat fell 4.2 percent in October, its biggest monthly decline since November 2011, which has sparked some bargain buying on dips in recent days. Based on the information above, I believe the price of wheat will go up soon.

Another news about wheat is that In its October World Agricultural Supply and Demand Estimates, USDA increased the estimated feeding of wheat during the current 2012/13 wheat crop year by 95 million bushels to 315 million bushels. USDA currently projects that the feeding of wheat will account for 12.7% of total projected use of U.S. wheat during the 2012 wheat crop year. This exceeds the average share of 9.1% and is the highest share since the 2000 wheat crop year. The increasing demand of wheat will certainly rise the price of wheat. It is obvious that the price of wheat will go up in long run.

The strategy of this week is that go long on wheat and offset weeks later. I hope I can earn a lot this week!