What’s Up, What’s Down: Spotlight on Grains
Comments for September 14, 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
SELL SIGNALS FOR WHEAT??
GRAINS: 9/14/11 Lower for rough rice, oats corn, soybeans, soymeal, soyoil, Minneapolis, Kansas City and Chicago wheat. The wheat complex made new recent lows and closes giving me SELL SIGNALS for Minneapolis and KC wheat while Chicago came close but still keeping me on the sidelines. Also Minneapolis has good support from 860 down to around 820 while KC from approximately 820 down to 790 both basis the December contract making these difficult areas to take new short positions or add on. Oats made another new recent low and close needing to hold the 333-334 area basis the December contract. Rice settled lower and still is in a strong uptrend overall but forming a potential top at this time. However, there is also strong support below under 175 basis the November contract. Corn, which has strong support that starts around 725 basis the December contract, now is in this support area closing in on a possible sell signal but should struggle to go lower from its present level. Of course, that doesn’t mean it won’t. The bean complex followed through lower making new recent lows and closes for the beans, meal, and oil but still a buy. All three grains are now in their respective support areas. However, the beans and meal are at the beginning of good support areas that could stall further declines. Still the bean complex does look like its forming a possible top. BUY SIGNAL FOR ROUGH RICE, SOYBEANS, SOYMEAL, SOYOIL AND CORN. SELL SIGNALS FOR MINNEAPOLIS AND KANSAS CITY 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.