What’s Up, What’s Down: Mixed Closes in the Grain Market
Comments for Tuesday, January 6, 2009
Looking Ahead to Today By Reflecting back at Monday’s price action
GRAINS:
Higher closes yesterday for Soybeans, soy oil, oats, Kansas City and Chicago wheat while lower for Minneapolis wheat, corn, rough rice and soy meal. While the entire wheat complex is still in a downtrend long term the retracements have gone farther than expected now giving me a buy signal for wheat with Minn. and KC close behind.
Although corn settled one cent lower this market looks to continue higher but in a large resistance area that tops out around 450 basis of the March contract. Rice settled lower also and puts me on the verge of removing my buy signal but not quite yet.
Oats continue to be in a narrow sideways market since late November with a slight bias to the downside. Overall oats are still in a downtrend that may be coming to an end. The beans had its highest closes since early October not quite giving me a buy signal. Meal settled lower but is in a bull flag and has given me a buy signal.
I also have a buy signal for oil which have its highest close since November. 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.