What’s Up, What’s Down: Commentary on Grains and Meats

Comments for Monday, August 30, 2010

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

Futures and options trading is speculative in nature and involves substantial risk of loss.  Futures and options trading is not suitable for all investors.


Higher closes Friday for rough rice, soybeans soymeal, soyoil, corn, Minneapolis, Kansas City and Chicago wheat while lower for oats and rough rice. All of the wheat are still in uptrends with Minneapolis needing to continue to hold 692, KC 691 and Chicago 677 1/2 in the December contracts. Since there is little support underneath all of the wheat, it becomes even more important for the above mentioned prices to hold. Rough rice settled lower after closing higher five out of the last six trading sessions. Rice has been in some resistance over the last two days so we’ll have to see how it performs next week. Corn settled higher again with its second strong close in a row making its highest high and close since January 11th-12th.

There is still strong resistance up to 450 basis the December contract and corn HASN’T CLOSED OVER 450 SINCE JUNE 12TH, 2009!. Also, corn is at the top end of a smaller resistance area. Even though what I just said is true corn has been in an uptrend since the beginning of July and that can’t be ignored. The bean complex settled higher once again with the beans now in a resistance area meaning next week could be crucial for the future direction of this grain. Meal also closed strong continuing to look higher. Oil settled sharply higher now in some resistance and still is the weakest of the bean complex. However, beans and to a lesser extent oil may be on the verge of turning back higher. BUY SIGNALS FOR MINNEAPOLIS, KANSAS CITY AND CHICAGO WHEAT ALONG WITH SOYMEAL, CORN, OATS AND ROUGH RICE. SELL SIGNAL FOR SOYBEANS AND SOYOIL. CALL FOR DETAILS!

Wheat Chart

Corn Chart

Soybean Chart


Mixed close for live cattle while lower for feeder cattle and lean hogs. Cattle still has a DOUBLE TOP in place but that probably won’t hold especially after the December contract had a strong rally off its session’s lows to settle higher. Of course that doesn’t mean you avoid paying attention to this pattern since nothing is guaranteed to happen. Cattle, along with the feeders, have been in uptrends since June and May respectively. Hogs followed through lower again toppy with its lowest low and close in two weeks. BUY SIGNALS FOR THE LIVE AND FEEDER CATTLE. CALL FOR DETAILS!

Live Cattle Chart

Feeder CattleChart

Lean Hog Chart

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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.

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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