What’s Up, What’s Down: Spotlight on Grains
comments for September 28, 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
WHEAT COMPLEX LOOKS BEARISH, TECHNICALLY SPEAKING
GRAIN: 9/28/11 Higher for Minneapolis, Kansas City and Chicago wheat along with corn, soybeans, soymeal, soyoil and rough rice. Although the grain complex settled higher, most of the grains closed near the lows of their respective trading ranges which is considered bearish action. On top of that the extremely weak dollar action didn’t seem to help that much. What this means, in my opinion, is that the grain crop for all practical purposes is in and the market must now rely on exports and the dollar to give it a decent boost. Of course one other factor might cause a rally and that would be rain during harvest. The wheat complex settled higher again with Minneapolis making its best close in nine trading days. Also, 820 is a key price to watch for Minneapolis and 720 for KC both basis the December contract. As mentioned above the wheat complex continues to look very bearish technically along with the rest of the grains. Oats also look very weak overall along with rice as seen below. At least rice ended its string of lower closes at six! Corn has heavy resistance overhead which will make it difficult to get through. The bean complex, like the rest of the grains couldn’t hold its early highs while still in major downtrend overall. SELL SIGNALS FOR OATS, ROUGH RICE, CORN, MINNEAPOLIS, KANSAS CITY WHEAT AND CHICAGO WHEAT. CALL FOR DETAILS!
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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.