What’s Up, What’s Down: Grains and Energies

Comments for Wednesday, August 25, 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 for soyoil while lower for oats, corn, rough rice, Minneapolis, Kansas City and Chicago wheat along with soybeans and soymeal. All of the wheat are still in uptrends with Minneapolis and KC in BULL PENNANTS OR TRIANGLES. Since there is little support underneath all of the wheat, it becomes even more important for the above mentioned bullish consolidation formations to work! Rough rice settled lower this time but still looking to continue higher overall. Oats settled ten cents lower but still is in an uptrend while now looking a little toppy. Corn had a large trading range closing very week with its lowest low and close in 1 1/2 weeks. Still, corn should move higher in at least the short term. However, there is still strong resistance up to 450 basis the December contract and corn HASN’T CLOSED OVER 450 SINCE JUNE 12TH, 2009!. The beans and meal closed lower while oil ended up higher this time helped along by the unwinding of meal/oil spreads. Beans had their worst low and close since July while the meal now looks toppy needing to hold 286.9 basis the December contract. Oil made its lowest low also since July but settled higher in reversal type action. 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

Soybeans Chart


Lower closes yesterday for the crude and heating oil along with the rbob and natural gas once again now giving me SELL SIGNALS in the crude and heat joining the rbob and gas from before. The crude made its lowest close since September 25th, 2009 while the heat and rbob had their worst lows and closes since May 24th and 25th respectively. Once again gas made a new CONTRACT LOW AND CLOSE. SELL SIGNALS FOR THE CRUDE AND HEATING OIL, RBOB AND NATURAL GAS. CALL FOR DETAILS!

Crude Chart

Heating Oil 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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