Mississippi Mucks Up Grains

• April 19, 2001
• Marc Dupee

Grains are lower on thoughts that blocked river traffic
from a flooded Mississippi river will hamper exports and cause supply
backlogs. 

The leading contract on the
Implosion-5 List, soybean oil
(
BOK1 |
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PowerRating),
is trading at a contract low, down .1200 at 14.8100, but the contract is
susceptible to an upside reversal above the previous contract low at 14.7200.

May wheat
(
WK1 |
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PowerRating), corn
(
CK1 |
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PowerRating)
and
soybeans
(
SK1 |
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PowerRating) are trading on the bottom of their ranges and are
down more than 4 1/2 cents each. 

European currency futures tanked initially on yesterday’s
surprise rate cut to multi-month lows, but recovered to close slightly positive,
or at nearly breakeven. Today
euro FX futures
(
ECM1 |
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PowerRating) and Swiss francs
(
SFM1 |
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PowerRating) are both
making good on Turtle Soup Plus One Buy
setups and trading on their highs of the session as traders adjust bond
portfolios to take account of the relatively lower interest rates now available
in the US. 

T-bonds
(
USM1 |
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PowerRating), from the
Implosion-5 List,
and

10-year notes
(
TYM1 |
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PowerRating), from the New 10-Day Low List,
are both tanking in a sign that bond traders are becoming more convinced that
the Fed’s monetary policy loosening cycle may be drawing to a close, that the
economy is on the road to recovery, and that inflation may spur rates higher.
June bonds are off, trading on the bottom of their range, down 29/32 at 101
2/32. 

In softs, July sugar
(
SBN1 |
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Chart |
News |
PowerRating) from the
New 10-Day Highs List is following through on this sign of building upside
momentum and has added .19, or 2.23%, to 8.72. 

Yesterday’s powerful rally in stock index futures caused
a sea change on one futures indicator page, placing all three index futures
contracts on the Momentum-5
List. Four downside reversal signals from the
Market
Bias Indicators Page are working to restrain an across-the-board rally, but
Naz futures are following through and now appear to be forming a Slim Jim, up
36.50.

Gary
Kaltbaum on TradingMarketsWorld! Gary Kaltbaum will be appearing on the
Intermediate-Term Trading board Thursday, April 19 at 8:00 ET. Be sure to take
this opportunity to chat with and have your questions answered by a leading
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