What’s Up, What’s Down: Spotlight on Grains
Comments for October 5, 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 RICE FUTURES THE ONLY BULL MARKET STILL STANDING IN THE GRAINS COMPLEX??
GRAINS: 10/5/11 Higher for Minneapolis and Chicago wheat while lower for Kansas City wheat, rough rice, oats, corn, soybeans, soymeal and soyoil. In my opinion the grain crop for all practical purposes is in and the market must now rely on exports, grain stocks and the dollar to give it a decent boost or not. Of course one other factor might cause a rally and that would be rain during harvest. KC made its worst low since November 2010 and lowest close since October 2010.Only Minneapolis has been making higher highs and lows since July but I’m standing on the sidelines for now expecting the rest of the grains to keep it down for now. Minneapolis has good resistance above 920 and below 860 basis the December contract. Corn made its worst close since March 17th very bearish overall with heavy resistance above. Oats (Dec.) had its lowest low and close since September 2010 also looking very weak overall while rice made its worst close since July 5th. Still rice has the only technicals on a weekly chart showing it to still be in a long-term uptrend! The bean, meal and oil had their lowest lows and closes since last year again continuing there overall slide even though there are many areas of lower yields than last year. This latest drop in the grain complex continues to be fueled by the bearish grain stocks report last week. SELL SIGNALS FOR OATS, ROUGH RICE, CORN, KANSAS CITY WHEAT AND CHICAGO WHEAT. CALL FOR DETAILS!
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.