LA FENG!!! using fundamental in commodity :)

I shouted: short Corn September 2013 contract at 2012-09-10! look at CU13 prie chart :) 

Here's the reason for the short: 
Corn September 2013 contract is literally a separate product from this year's corn and it's price is inflated along with this year's corn by the drought. It is overpriced and trading above its fundamental value. Unless there's another drought next year, it's price shouldn't be so high. 

Corn price skyrocketed last year because of daught, this push all contracts of corn up.
But, fundamentally 2013 corn is a different product from 2012 corn, thus market created a chance for us to short the overpriced 2013 corn. 
Corn only have contracts in Mar, May, July, Sep and Dec. Harvest time is usually from September to November, thus picking target to short as CU13
Even though price flutuated, eventually fundamentals will do its work and bring price down. 

 

Short corn September 2013 contract

 

 

来源: passers 于 2012-09-10 09:29:04 [档案] [博客] [旧帖] [转至博客] [给我悄悄话] 本文已被阅读：39次

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Corn September 2013 contract is literally a separate product from this year's corn and it's price is inflated by draught this year. Unless there's another draught next year, it's price shouldn't be so high. 

 

回复：Short corn September 2013 contract

 

 

来源: passers 于 2012-09-10 09:36:13 [档案] [博客] [旧帖] [转至博客] [给我悄悄话] 本文已被阅读：19次

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回答: Short corn September 2013 contract 由 passers 于 2012-09-10 09:29:04

Next year's corn is not this year's corn and it is overpriced. 

However, this is a not a short term play, and it could be a better/safer strategy to trade with option to limit loss :)

 

所有跟帖： 

• maybe soon to buy now -taiyoucai- ♂ (0 bytes) () 02/13/2013 postreply 06:20:08

• good call last year -taiyoucai- ♂ (0 bytes) () 02/13/2013 postreply 06:21:32

• CU13 1yr -passers- ♂ (149 bytes) () 02/13/2013 postreply 06:46:31