What’s Up, What’s Down: Spotlight on Grains
Comments for September 19, 2011
Looking ahead to Monday by reflecting back on Friday’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 RICE THE STRONGEST OF THE GRAINS?
GRAINS: 9/19/11 Lower closes for rough rice, oats, corn, soybeans, soymeal, soyoil, Minneapolis, Kansas City and Chicago wheat. The wheat complex made new recent low closes with Chicago finally giving me a SELL SIGNAL. Minneapolis has good support from 860 down to around 800 while KC from approximately 820 down to 790. Chicago wheat finally gave me a SELL SIGNAL but I would also like to see a close below 681 3/4 basis the December contract. Oats settled higher this time and may be in a BEAR PENNANT but still needing to hold the 333 &334 prices basis the December contract. Rice settled lower again still the strongest of the grains but now in a potential toppy formation. A potentially key price to watch is 1766(Nov.). However,there is also strong support below under 1750. Corn settled below 700 basis the December contract giving me a SELL SIGNAL but does have good support that starts around 725 basis the December contract down to 675-680 area. In my 675 is the real key area to hold for the bulls. The beans complex closed lower again. I have had sell signals for the short term but have held off saying so because of the weekly charts shown below. Only the oil really looks toppy while the beans and meal are back in thier 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! BUY SIGNAL FOR ROUGH RICE. SELL SIGNALS FOR CORN, MINNEAPOLIS, 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.