What’s Up, What’s Down: Mixed Close for Grains

Comments for Monday February 2, 2009

Looking Ahead to Today By Reflecting back at Friday’s price action


Higher close on Friday for soybeans, soy meal and bean oil while lower for Minneapolis, Kansas City and Chicago wheat along with corn, oats, and rough rice. The wheat complex continues to hold good support areas but needs to mover higher soon in order to hold on to my buy signals. It has been a struggle to move higher over the past few weeks. Chicago wheat looks the weakest. Corn also settled lower again still trying to get above the magic 400 basis the March contract since the bearish grain report. Also corn but has been holding up overall along while attempting to form a large bottom but now that is slowly fading away. Corn has strong resistance from 400 to 450 making this a difficult market to trade in its present area. Stay out for now. Have you noticed that on most days recently, the Grains have been mainly trading the same direction as the Dow?

Rice made a new contract low and close once again while oats made its second lowest low of the entire move before rallying to settle mid-range for the trading session. Oats still need to hold 200 basis the March contract trading basically sideways since November at least until today. The beans complex settled higher this time. Beans are near a sell signal while meal still looks the best technically to move higher and oil has given me a sell signal. I still have BUY signals for Soybeans, Soy meal, Minneapolis, Kansas City & Chicago Wheat; but Sell signals for Soybean Oil.

Oat Futures Chart

Soy meal Futures Chart

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.