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

Comments for Wednesday, May 5, 2010

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


Higher closes Tuesday for soybeans, soymeal, Minneapolis, Kansas City and Chicago wheat while lower for oats, rough rice, corn. All of the wheat continue to hold my buy signals with Minneapolis wheat making its highest close since February breaking out of one bull pennant while forming an even larger one and KC since early March. Oats and rice continue to look weak in orderly downtrending markets with the former equally a CONTRACT LOW CLOSE.

Corn settled lower again forcing me to remove my buy signal but has been consolidating over the last month trying to work higher in the face of bearish fundamentals, China and good resistance overhead. The beans and meal closed higher and oil lower this time which has been the normal action recently. The beans and meal remain buys in spite of the beans making its lowest low in three weeks before rallying to settle higher. Oil continues to be neutral but looking toppy and did make its lowest close since February still near a potential sell signal. BUY SIGNALS FOR MINNEAPOLIS, KANSAS CITY AND CHICAGO WHEAT ALONG WITH SOYBEANS AND SOYMEAL. SELL SIGNALS FOR OATS AND ROUGH RICE. CALL FOR DETAILS!

Wheat Chart

Soybean 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.