The road ahead (4th week)
Corn and wheat in the U.S. are not selling good in the world market. U.S. corn exports were projected to fall 25 percent this season to a 38-year low. On the other hand U.S. wheat sales on the global market slumped last week to the lowest point since late May as rival exporters continued to offer grain at lower prices. Russian wheat had dominated the market since late summer.
For soybean, a drop in net soybean sales was largely due to reduced purchases by top importer China, and still, soybeans’ price will stay at a low level due to pressure from the rapid pace of harvest, which is expected to be bigger than previously forecast.
Therefore, I decide to keep short on soybean for 18 contracts also short on wheat and corn for 6 contracts each.