What’s Up, What’s Down: Grains Back in the Spotlight

Comments for Wednesday, October 6, 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 to sharply higher closes yesterday for corn, soybeans, soymeal, soyoil, rough rice, and Minneapolis, Kansas City and Chicago wheat. All of the wheat were hurt by last week’s action and today’s strong closes hasn’t changed anything technically except Minneapolis has held, so far, its previous low around the 687-688 area basis the December contract.

My sell signals continue to be okay at this time. Oats settled sharply higher and look poised to test their recent highs but the action the rest of this week should tell us if that will happen. Rice rebounded sharply to settle higher and now should test its recent highs. Corn rallied sharply with a nice follow through from Monday’s action but still needs to close over 500 basis the December contract again where there is also some resistance.

There is such strong support from 450 down to 400 basis the December contract that corn probably will hold that area going into the planting season next year. The bean complex closed higher and should continue moving up over the near term. BUY SIGNALS FOR OATS, ROUGH RICE, SOYBEANS, SOYMEAL AND SOYOIL. SELL SIGNALS FOR MINNEAPOLIS, KANSAS CITY AND CHICAGO WHEAT. CALL FOR DETAILS.

Wheat Chart

Corn Chart

Soybean Chart

Is open-outcry going away? Do you know exactly how much futures trading is executed on electronic platforms like Globex? Download my Trading Volume report at https://www.zaner.com/3.0/ralexVolume.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 81% winning ETF trades in the model portfolio from October 2008 through August 2010 – you too can realize this level of success with Larry Connors’ Daily Battle Plan.