What’s Up, What’s Down: Grains Are All Bearish
Comments for Tuesday, June 1, 2010
Looking Ahead to Today by Reflecting Back at Friday’s Price Action
GRAINS:
Lower closes last Friday for corn, Minneapolis, Kansas City and Chicago wheat along with soybeans, soymeal, soyoil and rough rice. All of the wheat continue to be in downtrends overall with the Chicago July contract making a new CONTRACT LOW CLOSE. Corn went from its best close in eight trading sessions to its lowest low and close in over a week now at the lower end of its trading range, basically, between 360 and 380(July), since late March. Oats made its second lowest close of its move continuing to look lower along with rice which also settled lower. The bean complex closed lower all in downtrends at this time but still no sell signal for meal although it’s close to one. The beans have good resistance between 950 and 975 basis the July contract and meal continues to be in a DOWN CHANNEL making lower lowers and highs since April. Oil had its best close in two weeks now fairly close to a potential buy signal. SELL SIGNALS FOR MINNEAPOLIS, KANSAS CITY AND CHICAGO WHEAT ALONG WITH OATS, ROUGH RICE, SOYBEANS AND SOYOIL.CALL FOR DETAILS!
MEATS
Higher for pork bellies while lower for live and feeder cattle along with hogs. The cattle, feeders and hogs continue to act like they’ve topped with cattle making their second lowest close since the beginning of March and bellies making their second highest close of its move. There is good support for the August cattle contract around the 8750 area.
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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.
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