What’s Up, What’s Down: Spotlight on Grains
Comments for September 9, 2011
Looking ahead to Friday by reflecting back on Thursday’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
US futures exchanges will observe moments of silence on Friday, September 9, 2011. See the HOT TOPICS page at my website, for the times.
GRAINS: 9/9/11 – EXPORT SALES Higher for soyoil while lower for rough rice, oats, corn, soybeans, soymeal, Minneapolis, Kansas City and Chicago wheat. All of the grains continue to be in uptrends overall but now are showing potential tops in the wheat complex, oats and corn. Wheat has been lagging all along behind the corn and bean complex overall which is understandable, probably more to do with inter-grain spreading than anything else since the corn and beans have had spotty yields in many areas such as central and southern Illinois. However, now we’re also seeing some eroding of corn while the bean complex has held up better due to mainly the strength of soyoil as evidenced by the oil/meal spreading lately. Minneapolis has resistance over 960(Dec.) and support under 890 while KC has support under 820 and Chicago is already in a support area at this time. All three had their lowest closes since August 18 for Minneapolis, KC since August 22nd and Chicago since August 12th basis the December contract. Corn has strong support that starts around 725 basis the December contract which its been fast approaching with its worst close(Dec.) also since August 18th. The beans and meal settled lower while oil closed higher again as oil/meal spreading continues to hold up the oil. Oats had an unbelieveable eighteen cent trading range before settling lower on Wednesday while following through lower today with its lowest low and close since the middle of August. A key price to watch is 348 1/2(Dec.).Rice settled lower but continues to look extremely bullish overall. BUY SIGNALS FOR MINNEAPOLIS AND KANSAS CITY WHEAT ALONG WITH ROUGH RICE, SOYBEANS, SOYMEAL, SOYOIL, OATS AND CORN. 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.