What’s Up, What’s Down: Expected High Opening for Soybean Futures

Comments for Tuesday, March 31, 2009

This morning (3/31/09) at 8:30 am ET, the USDA released the first plantings report of the season! The preliminary analysis was bullish for soybeans and neutral for corn and wheat. Yesterday we saw higher closes for Minneapolis, Kansas City and Chicago wheat while lower for corn, oats, rough rice,  soybeans, soy meal and soy oil. All of the wheat continues to hold critical areas but still in down-trends overall. This is a good place, however, for bulls to buy because the risk is very low.

Corn settled slightly lower ahead of the grain reports continuing to struggle in its attempt to close over 400 (May) which would potentially be very good technically and psychologically. If this doesn’t happen relatively soon look for a sell off to the 350’s.

Rice settled sharply lower still needing to close over 130 basis the May contract and hold 120 since it’s been basically in a trading range between 120 and 130 starting late January. Overall rice has been trending lower.

Oats continue to struggle attempting to base while long-term in a downtrend. A close over 200 (May) would help since that hasn’t happened since February 10th. The bean complex settled lower across the board with beans and meal near support areas and oil still holding up. I maintain Buy Signals for Soybean Oil.

Corn Futures Chart

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.