What’s Up, What’s Down: Higher Meat Futures, Mixed for Metals
Comments for Tuesday, October 28, 2008
Looking Ahead to Today By Reflecting back at Monday’s price action
GRAINS:
Higher closes for soybeans, soymeal, soyoil, Minneapolis, Kansas City and Chicago wheat along with corn and rough rice but 12 cents lower for oats. The entire wheat complex continues to be in a major downtrend closing higher this time but in small bear pennants. Corn made a new recent low before rallying to close over 12 cents higher. Corn’s next support is around the 350 area as its downtrend continues overall.
Rice also made a recent low before rallying to close over 20 cents higher. Still rice, like the rest of the grains is still in a downtrend. Oats bucked the trend today settling lower making another recent low and close. The bean complex settled higher with meal poised for a buy signal any day now and the beans not far behind. Oil looks the weakest however.
MEATS:
Higher for live and feeder cattle along with lean hogs and pork bellies. Cattle and the feeders are now both in bear flags looking very bearish in spite of today’s strong closes. Hogs continue to look very bearish even after retracing higher over the last 1 1/2 weeks. Also those pesky gaps overhead makes one hesitant at times. Bellies gapped to a new contract low but manage to rally enough to avoid a new contract low close. Bellies are just as bearish as the rest of the meat complex with today’s strong close not changing its downtrend at least so far.
METALS:
Higher for gold and copper while lower for silver and platinum. Copper made a new contract low before rallying and settling higher in reversal type action. We should see a follow through on Tuesday. Still gold is in a strong downtrend overall but has little resistance up to the 800 level basis the December contract closed higher again following through from Friday’s reversal type action. Silver settled lower but didn’t make a recent low setting up a bear pennant formation in a bearish trending market. Finally, platinum settled lower making another new contract low and close.
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.