What’s Up, What’s Down: Spotlight on Grains

Comments for July 20, 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


GRAINS: 7/20/11 Higher for corn, soymeal, Minneapolis, Kansas City and Chicago wheat while lower for oats, rough rice soybeans and soyoil.  Minneapolis, KC and Chicago wheat are forming potential bottoming formations and are now close to possible buy signals. Minneapolis made its best high since June 29th and best close since July 5th with around the 1340(Sept.) area. KC made its highest high and close since June 22nd while Chicago its highest high since June 16th.  Oats settled lower once again with  resistance from 380 to 420 basis December contract. Also,oats have been making lower lows and highs since April shown on its daily chart below but with the other grains all basically acting like they’re in bottoming modes, it makes it hard for me to trust the short side. I’d rather just stand aside for now. Rice settled lower again causing a failed(small) bull flag with good support down around 160(Sept.) and below. Corn went sharply higher overnight but sold off during the day session still ending up on the day but below the all important(in my opinion) 700(Dec.) still at the upper end of a large resistance area. I’ll wait for this breakout to possibly happen before I give a signal. The beans and oil settled lower and the meal higher with oil continuing to lag behind and the meal/ oil spreading in command. The weekly and daily beans charts show that the beans have never settled over 14 dollars(both charts) and the weekly never below 13 dollars(this year). BUY SIGNAL FOR ROUGH RICE. SELL SIGNALS FOR MINNEAPOLIS, KANSAS CITY AND CHICAGO WHEAT. CALL FOR DETAILS!

In early morning trading the Grains sector is trading up 0.80%, from yesterday’s closing prices. There are eight futures contracts which comprise the Grains sector; and Grains are one of eight sectors featured in my Futures HeatMap – a color coded guided to the various market segments strengths and weaknesses. View the HeatMap at https://www.markethead.com/2.0

001 chart

002 chart

003 chart

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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.