What’s Up, What’s Down: Spotlight on Grains
Comments for April 27, 2011
Looking ahead to Wednesday by reflecting back on Tuesday’s Trading
Futures and options trading is speculative in nature and involves substantial risk of loss. Futures and options trading is not suitable for all investors
WILL WE SEE A RETRACEMENT IN WHEAT?
GRAINS: 4/27/11 Higher for the corn but lower for oats, rough rice, soybeans, soymeal, soyoil, Minneapolis, Kansas City and Chicago wheat. I now have BUY SIGNALS for Minneapolis, KC and Chicago wheat. Minneapolis (Feb.18th) and KC (Feb. 15th) made new recent highs before settling lower in reversal type action. The wheat complex is probably too high right now and I feel we will see a retracement which should give up a chance to go long at decent price level. Call for details! Chicago did close over 850(July) which is significant in my opinion. However, that doesn’t mean that we won’t have the retracement that I mentioned above. Rice settled lower but did give me a BUY SIGNAL a couple of days ago with resistance around the 155(July) area. Oats, like most of the grains closed lower but has been consolidating over the last three weeks, Corn was the only grain to settle higher acting like it will test its highs. Either way, the December corn contract did made a key reversal last Thursday although I would be surprised if it held up. Also, the May and July corn contracts still have two gaps below and, in my opinion, fill over 90% of them. The last gap not filled for corn, as far as I can tell, was back in 2009. Please call for details on how to deal with the corn gaps if you are interested. The bean complex settled lower with the beans and meal still looking lower and the oil sideways in my opinion. Oil looks the best with 6000(July) a key area to watch. BUY SIGNALS FOR MINNEAPOLIS, KANSAS CITY AND CHICAGO WHEAT ALONG WITH ROUGH RICE, OATS AND CORN. SELL SIGNAL FOR SOYBEANS AND SOYMEAL. CALL FOR DETAILS!
In early morning trading, my Futures HeatMap shows the Grains sector down a composite 1.21%, weakened by a large drop this morning in Wheat futures. View the color-coded HeatMap at https://www.markethead.com/2.0.
FOR SOYBEANS AND SOYMEAL. CALL FOR DETAILS!
Rick Alexander has been a broker and analyst in the futures business for over thirty years. He is a Vice-President for Sales and Trading at the Zaner Group (www.zaner.com) a Chicago-based futures brokerage firm. Email Rick at ralexander@zaner.com or call toll-free (888) 281-4158.
Futures and options trading is speculative in nature and involves substantial risk of loss. Futures and options trading is not suitable for all investors. The information in this Report and the opinions expressed are subject to change without notice. All known news and events have already been factored into the price of the underlying commodities discussed.