What’s Up, What’s Down: Spotlight on Grains
Comments for May 23, 2011
Looking ahead to Monday by reflecting back on Friday’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
SPOTLIGHT ON GRAIN FUTURES
GRAINS: 5/23/11 (Reports today: export inspections, Crop Progress). Higher for corn, rough rice and soybeans, neutral for bean oil while lower for soymeal, oats, Minneapolis, Kansas City and Chicago wheat. I guess this covers all bases with a BUY SIGNAL(19th) for Minneapolis wheat, neutral for KC and still a sell for Chicago. Oats settled lower with good support around 350(July) and lower but continues to look bearish overall unless it can at least settle over 375 at this time. Rice made its lowest highest high and close in three weeks also giving me a BUY SIGNAL on the 19th (May). Corn had its best high and close since April 29th but has been lately in a resistance area albeit near the highs while still in a bull market overall and having one gap left below. Don’t forget the December corn contract did made a key reversal and double top back in April that’s still in place while now back to possibly testing its highs if it can break out of the resistance area its in. The beans settled higher, oil unchanged and meal lower completing all directions! I’m now basically neutral the beans and oil while still negative the meal if only slightly. To me the bean complex has been trading sideways to lower over the last few months. BUY SIGNAL FOR ROUGH RICE. SELL SIGNALS FOR CHICAGO WHEAT, OATS AND SOYMEAL. CALL FOR DETAILS!
In early morning trading, the Grains sector is showing slight weakness. My Futures HeatMap, a color-coded view of the eight futures market sectors, shows that the grains group, as of 9:00 am Central this morning (May 23), is down a composite 0.47%, with six out of eight contracts (which comprise the Group), trading lower for the day. To view the Heat Map, click, or type this link into your browser: https://www.markethead/2.0.com
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.