What’s Up, What’s Down: Spotlight on Grains
Comments for July 27, 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.
OATS FORMING A BULL TRIANGLE? RICE MAKES ANOTHER CONTRACT HIGH
GRAINS: 7/2711 Higher for rough rice, oats, corn, soybeans, soymeal, soyoil, Minneapolis, Kansas City and Chicago wheat. The Crop progress report on Monday looked bullish for the corn(good condition down 4%) and bean(down 2). Minneapolis and Chicago wheat are still forming potential bottoming formations while KC has already giving me buy signal. However, Chicago has been consolidating over the last couple of weeks on the verge of ruining this potential formation. Oats had a large range but closing strong looking like it could be in a BULL TRIANGLE but still with good resistance from 380 to 420 basis December contract. I continue to remain on the sidelines. Rice made another new CONTRACT HIGH CLOSE ending its short-lived double top as expected. Now the 165(Sept.) area looms as rather important to hold. Corn had a strong close but nothing has changed as far as I’m concerned. The Dec. contract still needs to settle over 700(Dec.) which to me is the most important. Don’t get me wrong Its long-term trend is up but hasn’t really gone anywhere over the last few months while trading between 625 abd 680 most of the time. It’s easy to turn this into a horror movie by getting chopped up all of the time. Call me for an explanation on how to deal with this type of action. The bean complex settled higher with the beans still in a trading range going back to the beginning of April and filling its latest gap in no time. Meal equaled its CONTRACT HIGH CLOSE continuing to lead the way in the bean complex. Oil also had a good close but reamining behind helped along by meal/oil spreading that’s been going on for quite a while. BUY SIGNALS FOR ROUGH RICE, KANSAS CITY WHEAT AND SOYMEAL.. SELL SIGNALS FOR MINNEAPOLIS 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.