In this trading week I went short on both Nov. Soybean and Jan. Soybean on Thursday. And seeing Friday’s close price, my prediction about soybean price seemed right.

The USDA reported net export sales of 522,200 metric tons in the week ended Oct. 18. The sales were below traders’ expectations for sales in a range of 600,000 to 900,000 tons, according to a Dow Jones Newswires poll. This piece of report indicates a lot more soybean are actually in domestic market. Thus, I concluded that soybean price could be falling. But this might only influence price for a short term, so I went short only on Nov. and Jan. contracts.

The past week’s price showed that price of May contracts are actually rising, because farmers planted a lot of soybeans this year, and if no accident happens, large harvest is expected to come next May.

Reference:

http://futures.tradingcharts.com/news/futures/DJ_U_S__SOY__Beans_Ease_on_Profit_Taking__Export_Sales_Disappoint_187726008.html

http://www.grainews.ca/news/u-s-soybeans-fall-wheat-pares-gains-on-macro-worries/1001782004/