Here’s an overview of last week’s gains and losses
| Crop | Contract | Position | # | Price in | Price out | Gain/Loss |
| Wheat | W2Z | Long | 2 | 869.50 | 890.50 | +2098 |
| Corn | C2Z | Long | 1 | 741.25 | 747.25 | +311.50 |
| Soybeans | S3F | Long | 2 | 1514 | -6275 |
Overall, my equity change last week was -$3865.5.
Upside:
The wheat prices rose 4 days in a row last week before they fell on Friday upon the release of USDA crop estimation report. There have been news about increasing wheat export[1], strong demand for wheat export and export hopes[2] which I think are most likely to be the price driver on the rising wheat prices last week. I have my 2 long W2Z contracts from the week before and I made a price limit to short at price 880. They were offset on Wednesday at price 890.50 which was higher than my price limit.
Downside:
Soybeans prices have been falling. However, it’s not a good idea to just go long based on the fact that the prices seem to be low and go long from the “low” prices. I also forgot to make a Stop Loss order to offset those contracts.
Neutral:
Corn prices have been quite volatile, and the percentage change has been low. I made a price limit which allowed a small margin to offset and it was triggered. However, it might not be a good idea to trade in the corn market at the moment for its volatility and without a clear price trend supported by the fundamental. On the other hand, technical analysis shall still come in play quite well.
Anyways, continue happy trades into the 9th week.
Cheers!
1. Ahad, Abdul. (2012, Nov. 3). EU wheat supported by good export demand, weak euro. Retrieved from http://www.brecorder.com/markets/commodities/europe/88767-eu-wheat-supported-by-good-export-demand-weak-euro-.html
2. Ahad, Abdul. (2012, Nov. 9). US wheat rises with export hopes; corn, soy weak. Retrieved from http://www.brecorder.com/markets/commodities/america/89728-us-wheat-rises-with-export-hopes-corn-soy-weak-.html