What’s Up, What’s Down: Spotlight on Grains
Comments for September 21, 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 STILL LOOKS LOWER OVERALL
GRAINS: 9/21/11 Higher for soybeans, soymeal, oats, Minneapolis and Chicago wheat while lower for Kansas wheat, rough rice, corn and soyoil. Although I generally base my signals off the daily charts, I’ve decided to show just the weekly charts today so you can get a little longer range perspective. Minneapolis and Chicago may have closed higher but the entire wheat complex continues to look very weak overall. Minneapolis is now in a good support that starts around 860 and goes down to around 800 while KC from approximately 760 to 740. Chicago is also still in a support area. Oats settled higher and has broken out of a bear pennant to the upside which should indicate at least a short-term rally from its present level. Oats also need to hold the 333 &334 prices basis the December contract. Rice made its worst low and close since August after being down 50 point daily limit on Monday. However, there is also strong support below under 1750 which the rice is now in. Corn settled lower unable to hold early rallies but does have good support that starts down to the 675-680 area. In my opinion 675 is the real key area to hold for the bulls. The beans and meal settled higher while oil lower but no changes technically that I can see. Only the oil really looks toppy while the beans and meal are back in their wide trading ranges that started near the beginning of the year. Therefore, I’m going to stand aside at least for now. Don’t forget the beans haven’t even closed below thirteen dollars on the weekly chart this year! SELL SIGNALS FOR ROUGH RICE, CORN, MINNEAPOLIS, KANSAS CITY WHEAT AND CHICAGO WHEAT. CALL FOR DETAILS!
Grain traders can follow my comments at my Grains 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.