What’s Up, What’s Down: Bearish Mood in Grains

Comments for Friday, January 29, 2010

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


Higher settlements Thursday for corn, oats, Minneapolis, Kansas City and Chicago wheat along with soybeans and soymeal while lower for soyoil and rough rice. All of the wheat continue to be in down-trends but Minneapolis and Chicago are in support areas at this time. Corn closed higher also but still should work lower to the 350 area where its support (Mar. contract) starts and goes down to 425. Traditionally the grains have filled around 90% of their gaps and the December corn contract has one at 392 1/2. Rice settled lower again with its weak attempt at bottoming fading away at this time. But is attempting to form a bottom at this time. Oats settled higher looking very weak overall but has very little resistance up to 255 basis the March contract and has held a support area from 220 to 230 so far making this a scary market to take a position in either way! Its overall trend has been sharply lower since January 11th. The beans and meal closed higher and oil lower with beans and oil making new recent lows. Beans and meal continue to hold their respective support areas so far.

soybeans Chart

soybean meal Chart

soybean oil Chart

For a free download of “Top 50 Reasons Why Futures Traders Lose Money,” click: https://www.zaner.com/3.0/ljs50Reasons.asp.

See 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 www.markethead.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. If you would like a free booklet explaining the charts mentioned above, email Rick at ralexander@zaner.com.

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.