Comments for November 30, 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
IS THE WHEAT COMPLEX DOOMED TO A BEAR MARKET?
GRAINS: 11/30/11: Higher closes yesterday for corn, soybeans, soyoil, oats, rough rice, Minneapolis, Kansas City and Chicago wheat while lower for soymeal. The entire grain complex is, in my opinion, mired in a bear market as seen in the charts below with little affect from today’s strong closes. Minneapolis wheat is now in heavy resistance while KC has resistance over 700 and Chicago over 650 based on the March contracts. The oats, corn and the bean complex settled higher again but really not much compared to their recent drops. Corn (March) still has a gap at 698 with strong resistance from 650 to the 700 area. A major portion of its resistance is from 650 to 675. History says the odds are this gap will be filled but corn’s obvious struggle may negate this from happening. Rice made a new CONTRACT LOW before settling higher in reversal type action still having plunged since early September. The dollar rallying overall along with weak export demand for quite a while including Japan buying corn elsewhere the week before last hasn’t helped. At least we’ve seen the dollar break the last two trading sessions which has helped with the grain rally this week. The bean complex continues to look very weak as it continues to lag behind the other grains. SELL SIGNALS FOR MINNEAPOLIS,KANSAS CITY AND CHICAGO WHEAT ALONG WITH SOYBEANS, SOYMEAL AND SOY OIL ALONG WITH ROUGH RICE AND OATS. CALL FOR DETAILS!
Follow more Grains related stories and commentary at my Grains blog (www.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.