What’s Up, What’s Down: Spotlight on Grains
Comments for July 1, 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
THURSDAY WAS A WILD AND CRAZY DAY IN THE GRAINS COMPLEX
GRAINS: 7/1/11 Sharply higher for rough rice while mostly sharply lower for soybeans, soymeal, soyoil, oats, corn, Minneapolis, Kansas City and Chicago wheat mainly due to how bearish the grain reports were for corn. Minneapolis, KC and Chicago made new recent lows and closes with some of the Chicago wheat contracts down their 60 cent limit. The wheat complex made new recent lows and closes also. Oats settled sharply lower but did come off their 20 cent limit later in the session. Rice initially went sharply lower but rallied to end up it’s 50 cent limit in the most profound action of the day. It was quite a display of reversal type action while in a resistance area along with still being in a down-trend overall. Old crop corn(no limits) settled 69 cents lower while new crop finally gave me a SELL SIGNAL by settling down its 30 cent limit. It should catch up on Friday. The beans and meal closed sharply lower giving me a SELL SIGNAL in the beans while the oil held up better not making new recent low and close like the beans and meal did. IN MY OPINION THE BEAN COMPLEX SHOULD NOT BE SOLD AT THIS TIME SINCE THE CORN PULLED DOWN THE OTHER GRAINS. 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!
The July 1-4 holiday trading schedule for Independence Day, now posted at HOT TOPICS https://zaner.com/3.0/market_information/hot_topics.asp page at my website.
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.