In Week 7, I choose to go 8 contracts, again.  2 short contract on soybean and 3 short on Wheat and 3 short on Corn.  Out of my expectation, the corn price was not positive coefficient with the fluctuation of soybean prices.

Here is some graphs about soybean price movements:

After crazy week 6, soybean price slump to only around $1400 per contract. I understand the price gonna head South. However, due to the trading system we can only trade from Monday to Friday.  I choose to get out of the market on Friday morning.

Unfortunately, the price start to collapse on week 6 Friday and the fear continue spread on Sunday.  The price finally arrive at around $1400 on Monday Week 7. There is no time to  hesitate at this moment.  I know traders must react to the latest news—-The USDA expectation is 4% more than the used one. Goldman Inc, also cut their hope on Corn, Soybean and wheat.

At the Week 7, I choose to go short on all three commodity we are trading at. On wednesday, I get into the market on Wednesday morning and again get out on Friday.I was lucky, this time, the market shows a downward trends. Although it is small downward trend. I still make about $3000 in Week7.

From the weekly graph, we could have a clear view about the”head and shoulders”picture.

From the technical analysis, the price should continually decrease during at the beginning of November.

The Road Ahead in Week 8:

I believe the future price of soybean will heavily depending on the biofuel program.  From a news, “US could probably become energy independent in the near future.” Also, the yield  in Latin America will heavily influence the market price.   The market price will rebound a little in the next week.  I will try to go long on soybean for the next going week.