What’s Up, What’s Down: Spotlight on Grains
Comments for January 12, 2011
Looking ahead to Wednesday by reflecting back on Tuesday’s trading
Futures and options trading is speculative in nature and involves substantial risk of loss. Futures and options trading is not suitable for all investors
GRAINS: 1/12/11: [Reports released today: CROP PRODUCTION. GRAIN STOCKS. WINTER WHEAT SEEDINGS] Higher closes yesterday for oats and rough rice, unchanged for corn while lower for soybeans, soymeal, soyoil, Minneapolis, KC and Chicago wheat ahead of major grain reports coming out on Wednesday The wheat complex continues to look higher overall but Minneapolis and KC look somewhat toppy at this time. Minneapolis needs to hold the 840 area and KC 820 basis the March contract. Chicago should hold 742 to avoid dropping further although it has good support from 750 all the way down to 700. Oats settled lower still in a trading range roughly between 350 and 400 basis the March contract with good resistance above 385. Rice settled slightly lower but has been in a sideways to lower pattern for a couple of months making lower highs and higher lows since the middle of November. Rice seems to be coming to a head as shown below. Corn closed unchanged still in an uptrend awaiting the crop reports. The bean complex settled lower with the beans, meal and oil in similar consolidation patterns but ending the beans and oil bull triangles.. BUY SIGNALS FOR CORN, SOYBEANS, SOYMEAL, SOYOIL, MINNEAPOLIS, KANSAS CITY AND WHEAT. SELL SIGNAL FOR ROUGH RICE.CALL FOR DETAILS!
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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. Email Rick at ralexander@zaner.com or call toll-free (888) 281-4158.
Futures and options trading is speculative in nature and involves substantial risk of loss. Futures and options trading is not suitable for all investors. The information in this Report and the opinions expressed are subject to change without notice. All known news and events have already been factored into the price of the underlying commodities discussed.