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

Comments for Wednesday, March 17, 2010

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



Higher closes yesterday for rough rice, soybeans, soymeal, soyoil, corn, oats, Minneapolis, Kansas City and Chicago wheat. All of the wheat continue to be in downtrends overall as evidenced by the wheat chart below.

Corn continued settled higher this time but still working lower overall with 359 basis the May contract a key price to hold. Corn still has a gap at 403 in the May contract and, as I’ve mentioned many times before, throughout history, grains fill over 90% of their gaps sooner or later. So far this may fall under the 10% that’s not filled! Rice closed higher this time off of its reversal type action on Monday but still looks to be in a very strong downtrend overall.

Oats settled higher but still is in a BEAR PENNANT, only a larger, one while in a strong downtrend overall leading the grains down overall. The bean complex settled higher with meal making its lowest low since March ’09 in reversal type action. Also, 911 is a key price to hold in the May bean contract. Oil still looks higher but was hurt, at least so far, by Monday’s action. BUY SIGNAL FOR SOYOIL. SELL SIGNALS FOR MINNEAPOLIS AND KANSAS CITY WHEAT ALONG WITH ROUGH RICE, OATS, SOYBEANS AND SOYMEAL. CALL FOR DETAILS!

Wheat Chart


Read the balance of my morning comments, including the Metals, Softs, Energies and Grains, at my website. For my complete coverage, visit my commentary page at www.markethead.com.

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. If you would like a free booklet explaining the charts mentioned above, 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.

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