What’s Up, What’s Down: Grain Market Analysis
Comments for Wednesday, September 8, 2010
Looking Ahead to Today by Reflecting Back at Tuesday’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.
Note: Sept/Dec Stock Index Futures Rollover begins Thursday, Sept 9.
GRAINS:
Higher closes yesterday for Minneapolis, Kansas City and Chicago wheat along with oats, corn and soyoil while lower for rough rice, soybeans and soymeal. All of the wheat continue to look higher overall with Minneapolis and KC starting to turn higher over their present consolidation formations but Chicago is lagging behind a little at this time. Minneapolis needs to hold 692, KC 691 and Chicago 677 1/2 in the December contracts. With little support underneath the wheat complex the above mentioned prices become more important than they normally would.Rice closed lower again while still in a consolidating mood but it was the lowest close in eight trading sessions which could be signaling the end of its rally. However, it’s too soon to know at the present time. Corn continued to move higher with its best high and close since January 11th once again. Of course, corn’s resistance goes up to 450 and we all know by now corn hasn’t closed over 450 basis the December contract since June 12th 2009. I’m pretty certain corn will take out 450 and run the stops before correcting.The beans and meal settled lower and oil higher but no changes technically. Beans and oil still look toppy and lower while the meal continues to hold its uptrend momentum. 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!
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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.