What’s Up, What’s Down: Spotlight on Grains
Comments for October 14, 2011
Looking ahead to Friday by reflecting back on Thursday’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.
WATCH THE GAP IN DEC CORN
Higher for rough rice, soybeans, soymeal and soyoil while lower for oats,corn, Minneapolis, Kansas City and Chicago wheat. .Although KC and Chicago wheat remain in down-trend overall Minneapolis has been making higher highs and lows since the middle of July. KC has good support from 700 to 680(Dec.) while 730.5, the recent high of the last two trading sessions is important to watch for at least the short term. Chicago right now is in a support area and also has little resistance up to the 7 dollar area that could lead to a retracement rally in the near term. Corn, for its second session in a row, had a good sell-off before rallying to settle a few cents from unchanged. I have been mentioning that the December contract could, in my opinion, stall out between 550 and 575 if its going to take out its lows. However, I did forget there’s a GAP (Dec.) between 682 and685 1/4 and you know how I feel about grain gaps especially in the corn. Therefore, I will amend how far the retracement rally could go. Meanwhile, corn had a high of 655(highest in 2weeks) the night before last.! The Russian and Chinese news along with a weak dollar at this time could also help the corn stabilize. Rice made its best close since September 23rd up for its 3rd session in a row with resistance from 165 to 175 basis the November contract standing in the way of its retracement rally. Oats closed down with the 350 area(Dec.) important to watch if there is going to be a turnaround. The bean complex closed higher with beans up 4 sessions in a row and oil making its best close since September 27th. Also there is little resistance, in my opinion, for November beans up to the 13 dollar level, meal 340(Dec.) and oil 5600(Dec.) leaving room, potentially, for a nice rally. Of course, that’s no guarantee it will happen! BUY SIGNAL FOR MINNEAPOLIS WHEAT. SELL SIGNALS FOR OATS, ROUGH RICE, CORN, KANSAS CITY WHEAT AND CHICAGO WHEAT. CALL FOR DETAILS!
For more Grain market commentary, please visit my Grain Futures Update blog. (https://grainfuturesupdate.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. 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.