What’s Up, What’s Down: Spotlight on Grains
Comments for June 29, 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.
BEANS FORMING A POSSIBLE BULL TRIANGLE (AND CORN MAKES ITS WORST CLOSE SINCE MAY 11)
GRAINS: 6/29/11: Higher to sharply higher for soybeans, soyoils oymeal, rough rice, oats, corn, Minneapolis, KansasCity and Chicago wheat while lower for soymeal. All of the grains excluding meal rallied off of a weak dollar, weather and flooding problems. It looked like massive short liqudation was going on. Minneapolis, KC and Chicago has strong closes with KC holding its support area.but not really affecting their downward trends at least not yet. I am looking for a follow through to the upside in the short term for the grain complex however Oats had its worst low since last Oct.before rallying to close higher in reversal type action. There is good resistance around the 360 area basis the Dec. contract. Rice also had its worst low since Mar. 17th but closing higher in reversal type action now with strong resistance right overhead going up 1550(Sept.) area. Corn settled sharply higher now in the middle of its support area for the Dec. crop still keeping me on the sidelines at this time. Old(July) crop corn is still a sell and looking lower overall but running out of time to trade with deliveries starting after the clos one June 30th. The beans and oil settled higher while meal closed lower but I still remain on the sidelines for the beans and have sell signals in the meal and oil. However, if you look at the weekly bean chart below, both the old and new crop beans are in possible BULL TRIANGLES! SIGNALS FOR ROUGH RICE, OATS, (OLD CROP)CORN, 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.