What’s Up, What’s Down: New Lows for Wheat

Comments for Wednesday, January 20, 2010

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


Lower closes yesterday for rough rice, Minneapolis, Kansas City and Chicago wheat along with soybeans, soy meal, soy oil, corn and oats again. All of the wheat had poor closes again making new recent lows and closes with Minneapolis in a support area while KC (SELL SIGNAL) and Chicago are close. Corn made its lowest close since October 8th again with support under 350 basis the March contract. Traditionally the grains have filled around 90% of their gaps and the December corn contract has one at 392 1/2. Rice settled lower again and is now in a support area. I don’t know how I left it out but Oats gave me a sell signal on the 14th of January. I apologize for this transgression. Now oats are in a support area after falling straight down since the 11th. The bean complex closed lower again with beans and oil making new recent lows and closes. The meal is now in a support area and the oil’s key price is 3700 basis the March contract. Sell Signals for Wheat, along with Corn, Oats, Rice and the Soybean complex. Please feel free to contact me for details.

Wheat Chart

Wheat Chart 2

Oats Chart

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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.

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.