Buy Signal in Wheat, But Still Technically Bearish on Corn

Comments for Wednesday, February 24, 2010

Looking Ahead to Today by Reflecting Back at Tuesday’s Price Action


Higher closes yesterday for rough rice while lower for corn, Minneapolis, Kansas City and Chicago wheat along with soybeans, soymeal, soyoil and oats. All of the wheat had weak closes this time but are still holding their respective support areas with my buy signals still intact. Corn closed lower but not as weak as I expected off of Monday’s action. Still, I have a buy signal in place and a gap at 403 in the May contract. Corn now has support under 380 and from before around 350. Most of the the bearish news, which now includes a rate hike by the fed, is in the market and corn continues to hold up well. Traditionally, grains fill around 90% of their gaps. Rice rallied sharply off its lows to settle near its session’s highs but still is in a major downtrend overall. Oats also settled lower for the fourth consecutive trading session making its lowest low since January 22nd back to continuing its downtrend since the middle of November. The bean complex started out strong, although I didn’t understand why, finally broke sharply in the last half hour to settle down on its session’s lows across the board keeping my sell signals alive. However, the beans, meal and oil are forming possible bottoms at this time.

Wheat Chart

Oats Chart

Read the balance of my morning comments, including the Metals, Softs, Energies and Grains, at my website. For my complete coverage, visit my commentary page at

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 ( a Chicago-based futures brokerage firm. If you would like a free booklet explaining the charts mentioned above, email Rick at

The information in this Report and the opinions expressed are subject to change without notice. Neither the information nor any opinion expressed constitutes a solicitation by Rick Alexander or the Zaner Group of the purchase or sale of any futures or options. Futures and options trading is speculative in nature and involves risks. Spread trading is not necessarily less risky than outright positions. Futures and options trading is not suitable for all investors.

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