What does the wheat futures March successes that look as if this trade is going to work? We started seeing the March wheat futures in the first week of September, by entry between that date and the last week of November. We are especially interested in what the March wheat futures to appear before September, but according to previous models of the season, not due to late September in a downward trend. The normal pattern of wheat futures at this time of year is that wheat prices will begin to increase or at least remain flat. Falling prices indicate an excess supply of wheat. The increase or the plain may have begun before, or start later but not before the end of September.
The main thing we do not want to see is that prices of wheat that falls after September. If wheat prices are falling in the period mentioned, we do not have a normal year for these future and we want to prevent this trade. Nobody knows for sure what weather conditions will be between the first week of September and when known figures wheat inventories. No one knows if the exports are up, down, or flat compared with the previous year. Season is the anticipation that must underpin the price of wheat futures. Obviously, this same type of technique could be applied to any product you can buy that can be expected to experience a higher seasonal activity.
Therefore, we see a chart of wheat. We select the best the best possible time for enter. Experience has shown that the two best times are the following:? An announcement by the government between September and October that the wheat export sales have increased substantially? a comprasituacion? A report showing a larger-than-expected inventories of wheat from September to November? a situation of short selling. In "A", we see ads from government reports that demand for wheat for export is large. It is mid-September. People rush to buy wheat futures. However, from the look of this picture, the global demand for wheat was not very good. In fact, the year shown was poor for wheat most of the time. Later, beyond the time limits within which we are interested in "B", we see that the government report for the January harvest was very bad for wheat. There was simply too much of it. Wheat prices began to plunge. What prevented the passage? Anticipating the problems of planting due to the unseasonably extension of the George Washington University in Norfolk, VA. Joe still tutors, teaches, writes, and regular trade. Joe is still an active and integral part of Trading Educators.