What’s Up, What’s Down: Spotlight on Grains
Comments for July 6, 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
DISCONNECTING THE SOYBEAN COMPLEX FROM THE CORN MARKET
GRAINS: 7/6/11 Higher closes yesterday for rough rice, soybeans, soymeal, soyoil, corn, Minneapolis, Kansas City and Chicago wheat while unchanged for oats. The wheat complex continues to look lower overall with Minneapolis and KC making small gaps below. Oats settled unchanged but looking like they’re in a BEAR PENNANT.. Rice followed through higher for the third session in a row after being up the 50 cent daily limit last Thursday in reversal type action. My sell signal is now on shaky ground but rice has some resistance area around the 1600 area. New crop corn settled higher filling part of its gap that goes to 620 1/2(Dec.) It should eventually be filled in my opinion. Therefore, no positions should be added on the short side until the Dec. contract trades between 625 to 675 in my opinion which is a strong resistance area. The bean complex settled higher again but still is in a down-trend overall. IN MY OPINION THE BEAN COMPLEX SHOULD NOT BE SOLD AT ITS PRESENT LEVEL AS I BELIEVE CORN PULLED IT DOWN. I EXPECT THE BEAN COMPLEX WILL RALLY FROM ITS PRESENT LEVEL NO MATTER WHAT CORN DOES IN AT LEAST THE SHORT TERM. SELL SIGNALS FOR ROUGH RICE, OATS, CORN, SOYBEANS, SOYMEAL, SOYOIL, MINNEAPOLIS, KANSAS CITY 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.