What’s Up, What’s Down: Grains and Currencies are in the Today’s Spotlight

Comments for Wednesday, August 18, 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.


Higher closes Tuesday for rough rice, corn, oats, soybeans, soymeal and soyoil while lower for Minneapolis, Kansas City and Chicago wheat. All of the wheat are still in uptrends but were especially hurt technically in Minneapolis (Monday) and Kansas City (Tuesday) with failed BULL TRIANGLES OR PENNANTS (Take your pick) with little support underneath near term which makes going long dangerous at their present levels unless trading options.

Minneapolis needs to hold 10300 basis the September contract in my opinion. Rough rice settled higher and is attempting to bottom as my buy signal continues to indicate. Oats closed higher also still in an uptrend but struggling in choppy action lately. Corn had its best close since January 11th again but has strong resistance up to 450 basis the December contract and HASN’T CLOSED OVER 450 SINCE JUNE 12TH, 2009!. I really feel corn will continue to be choppy with the bulls talking about wheat and China buying down the road while the bears will talk about the huge crop potentially on the way.

I’VE LEARNED THROUGH AN AGRONOMIST THAT 75% of the people that he works with says the corn crop is equal to or better than last year while 25% say it’s worse but all agree that China should be a big buyer in the near future which could cause the grains to rise in price overall. The bean complex settled higher with beans making its best close since December 8th and meal since December 4th while oil barely ended up higher on the day. All continue to be in uptrends overall but the oil has been lagging behind while in a consolidation mode. BUY SIGNALS FOR MINNEAPOLIS, KANSAS CITY AND CHICAGO WHEAT ALONG WITH SOYBEANS, SOYMEAL, SOYOIL, CORN, OATS AND ROUGH RICE. CALL FOR DETAILS!


Corn Chart

Soybeans Chart


Higher for the Euro Fx, Canadian Dollar and Aussie Dollar while lower for the British Pound, Japanese Yen, Swiss Franc and dollar index. All of the currencies continue to be in uptrends overall but the euro and pound look a little toppy at this time while the franc needs to hold the 9400 area basis the September contract. The Canadian Dollar had a strong close still in a trading range dating back to the middle of May but also has been making higher lows since that time. The Aussie Dollar’s close should signify a move back up to test its contract highs while the dollar is either forming a potential bottom or its retracement rally is over. BUY SIGNALS FOR THE BRITISH POUND, EURO FX, SWISS FRANC, AUSSIE DOLLAR, CANADIAN DOLLAR AND JAPANESE YEN. SELL SIGNAL FOR THE DOLLAR INDEX. CALL FOR DETAILS!

Euro Chart

Canadian Dollar Chart

US Dollar 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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