The Road Ahead – Sit and Behold

As mentioned in the previous post, I got my long contracts on wheat and soybeans last Monday at their high prices and their prices went through a big dive during the week leaving me an unrealized loss of about $4000.  I am keeping the contracts to wait for their prices to go up to a point where I believe I could minimize my loss as much as possible (reducing the loss and risks induced by new uncertainties, etc) .

I certainly don’t like my trading game to turn into a loss minimizing game.  This “damage control” has become my overhead and a good reminder of me to stay on top of my tradings.  I will make new purchases as I find my justifications along the way with the daily news.

So far, I have got news about soybeans^[1] which indicate there might be increases in the soybeans futures prices:

• export sales jumped to a three-month high last week
• oilseed demand is renewed by the price drop

References:

1. Plume, Karl. (2012, Oct 5). U.S. corn eases on harvest pressure, soybeans level . Retrieved from http://www.grainews.ca/news/u-s-corn-eases-on-harvest-pressure-soybeans-level/1001747419/

2. USDA. (2011, Dec. 19). Schedule of 2012 release dates of cotton reports issued by the U. S. Department of Agriculture. Retrieved from http://usda.mannlib.cornell.edu/usda/ams/CNAASRD.pdf