What’s Up, What’s Down: Spotlight on Grains
Comments for October 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.
WATCH THE GAPS ON THE CATTLE & FEEDER CATTLE CHARTS
GRAINS: 10/12/11 REPORTS TODAY: CROP PRODUCTION. SUPPLY/DEMAND]. Higher to sharply higher for Minneapolis, Kansas City and Chicago wheat along with oats, corn, soybeans, soymeal and soyoil again while lower again for rough rice this time. All I can say is what a day! While everyone was looking ahead towards Wednesday’s grain reports, news out of Russia saying that they were going to cut back on grain exports caused the grains to explode to the upside. KC and Chicago wheat settled sharply higher with the former making its best close since the beginning of September and Chicago in two weeks. However, Minneapolis, which was the strongest of the wheat complex by far lately, actually sold off still making its best close since the middle June but near its session’s lows. Corn, for the first time, after trading in a wide range reached its new forty cent trading limit where it eventually closed. It should still stall out between 550 and 575 but the Russian could put a new wrinkle in the equation. Rice made its lowest low and close since early July again continuing its slide. The bean complex settled sharply higher also with the beans, meal and oil all trading in wide ranges making their best closes since September. Also the November bean contact has little resistance up to the 13 dollar area, meal 340(Dec.) and oil 56(Dec.). SELL SIGNALS FOR OATS, ROUGH RICE, CORN, KANSAS CITY WHEAT AND CHICAGO WHEAT. CALL FOR DETAILS!
For more Grains 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.