What’s Up, What’s Down: Spotlight on Grains
Comments for November 16, 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.
ARE BEANS STILL IN A DOWNTREND??
GRAINS: 11/16/11 Higher closes yesterday for soybeans, soymeal, soyoil, oats, corn, Minneapolis, Kansas City and Chicago wheat while lower for rough rice. While KC and Chicago wheat remain in long-term downtrends and Minneapolis in an uptrend, I’m still standing aside for Chicago wheat while keeping my sell signal for KC wheat at least for now. Chicago has been trending basically sideways since October 3rd but is now at the lower end of its range. Corn had a strong close this time avoiding a sell signal but with the same situation overhead technically. A gap remains in the December contract going from 682 to 685 1/4 along with strong resistance all the way up to around the seven dollar area basis that could make it a difficult to fill this gap. History says the odds are this gap will be filled but corn’s obvious struggle to fill its gap has been duly noted. With all this being said I’m standing aside for now. Rice made its lowest low and and close since June 30th continuing its overall slide since early September. Also rice has closed lower twelve out of its last fourteen trading sessions. Oats had it lowest low since October 10th before settling higher in reversal type action. However, oats were struggling all day seemingly pulled up by the strength in the rest of the grain complex. Also, oats have been making lower highs and lows since late August. The bean complex settled higher once again but has made little difference in its overall downtrend which begans near the beginning of September. BUY SIGNALS FOR MINNEAPOLIS WHEAT. SELL SIGNALS FOR KANSAS CITY. CALL FOR DETAILS!
For more Currency 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.