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

Comments for Wednesday, May 12, 2010

Looking Ahead to Today by Reflecting Back at Tuesday’s Price Action


Basically, the market shrugged off, the across the board, a bearish crop production report with Minneapolis wheat, soybeans, soymeal, corn and oats closing higher, rough rice unchanged while Kansas City and Chicago wheat along with soyoil settled lower. All of the wheat continues to hold my buy signals so far with Minneapolis in a nice looking support area. Oats made a new CONTRACT LOW again but managed to settle higher in reversal type action. Rice closed unchanged, but like oats, continues to look very weak overall. Beans and meal settled higher and oil slightly lower with the latter two still holding at critical areas as oil still looks lower at this time. Corn continues to be basing over the last couple of months still in a long term downtrend but today had great action against its bearish report. Generally, when you see markets shrug off reports and move in the opposite direction, you will usually see a continuation of that day and many times is the beginning of a new trend. We’ll see! BUY SIGNALS FOR MINNEAPOLIS, KANSAS CITY AND CHICAGO WHEAT ALONG WITH SOYBEANS AND SOYMEAL. SELL SIGNALS FOR OATS, ROUGH RICE AND SOYOIL. CALL FOR DETAILS!

Wheat Chart

Corn Chart


Higher closes Tuesday for live cattle, unchanged for pork bellies while lower for feeder cattle and lean hogs. Cattle and feeders continue to be in uptrends overall but cattle made a new CONTRACT HIGH CLOSE in the June contract but the feeders, basis the August contract, are trading in a range between 11400 and 11750 since the beginning of April and looking a little toppy at this time. Hogs closed higher again still in a potential topping formation that goes back to April 5th as shown below. The bellies settled higher still in an uptrend overall but will leave it at that! BUY SIGNALS FOR LIVE AND FEEDER CATTLE ALONG WITH LEAN HOGS.

Live cattle Chart

Lean Hogs 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.