What’s Up, What’s Down: Grains Remains Lower, but Metals in Uptrend

Comments for Wednesday, September 23, 2009

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


Higher closes yesterday for soybeans, soymeal, soyoil, corn and oats while lower for Minneapolis, Kansas City and Chicago wheat along with rough rice. All of the wheat continue to barely hold on to their KEY REVERSALS while still in long-term downtrends overall. Corn had a strong rally off rumors of China in the market to buy circulating around the trading floor along with the cooler weather forecast moving up to the end of September from early October. Still corn has been holding up over the last couple of weeks. It should be a struggle to work lower from here since most of the bad news seems to be out of the way but did have a DOUBLE TOP last week and was unable to close over 350 (Dec.) before selling back off to its present level. On the other side of the coin there could easily be an attempt to take out the 300 level and run the stops. Rice settled over 20 cents lower with a little support is present area and resistance over 140 basis the January contract. If rice doesn’t hold where it closed then there is better support under 130. Oats settled one cent higher this time continuing to hold important lows at the 200 level basis the December contract while basing since late July. However, its trend is still lower overall since early June. The bean complex closed higher with beans, meal and oil holding in support areas at this time. The trends for these grains remain down also.

Wheat Chart


Higher for the Euro fx, Swiss franc, Canadian and Aussie dollar along with the pound and Japanese yen while lower for the dollar index. All of the currencies still are in uptrends with the euro and franc making their highest highs and closes in 2008! The yen and pound have struggled over the last few weeks but are still in uptrends at this time while the Aussie dollar made a new contract high close. Also the Canadian dollar and pound have been basically trading sideways since the middle of the year with the former near the high end of its trading range. The dollar index made a new contract low close.


Higher for copper, silver, gold and platinum but still no changes technically. All of the metals continue to be in uptrends but Copper continues to show potential topping signs needing to hold the 27500 are basis the December contract. Gold and silver settled higher still in uptrends holding their respective support areas. Platinum also closed higher also but with no support nearby still looking higher overall at this time.

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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.

See 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.