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

Comments for Tuesday, August 3, 2010

Looking Ahead to Today by Reflecting Back at Monday’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 settlements on Monday for Minneapolis, Kansas City and Chicago wheat along with oats, rough rice soybeans and soyoil while lower for corn and soymeal. All of the wheat continues to move higher with Minneapolis and KC making new CONTRACT HIGHS AND CLOSES while Chicago had its highest high and close since June 2009 again. Corn had its highest high since March 5th before selling off and closing lower in reversal type actions. Corn seems to be tagging along with the wheat that has been leading the way due to Russian crop problems and monsoons in India causing crop rotting.

Oats had another strong close (highest high and close since January) after breaking out of a large bull triangle on Friday. Rice had a huge range closing sharply higher now giving me a BUY SIGNAL with its best high and close since June. The beans and oil settled higher while meal closed down buy the bean complex continues to be in a bull market at this time. Beans made its best high and close since the first week in January and the oil since the middle of May. Meal, however, had its highest high since last December before closing lower in reversal type action. BUY SIGNALS FOR MINNEAPOLIS, KANSAS CITY AND CHICAGO WHEAT ALONG WITH SOYBEANS, SOYMEAL, SOYOIL, CORN, OATS AND ROUGH RICE. CALL FOR DETAILS!

Rough Rice Chart

Corn Chart

Soybeans Chart


Higher closes yesterday for lean hogs but lower for live and feeder cattle. The cattle (Dec.) and feeders (Oct.) continue being in uptrends with resistance around 9750 for the former and 1150 for the latter. However, it was the lowest low and close in nine trading sessions for the feeders. Hogs made another new CONTRACT HIGH AND CLOSE in the December contract. BUY SIGNALS FOR LIVE AND FEEDER CATTLE ALONG WITH LEAN HOGS. CALL FOR DETAILS!

Live Cattle Chart

Feeder Cattle Chart

Lean Hog Chart

There has been a lot of talk and advertising for Gold exchange traded funds (ETFs). Do you understand the difference, from a trader’s point of view, between gold futures and gold ETFs? Download my comparative evaluation report at https://www.zaner.com/3.0/ralexGold.asp.

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.

With 80% winning ETF trades in the model portfolio from October 2008 through July 2010 – you too can realize this level of success with Larry Connors’ Daily Battle Plan.