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

Comments for June 9, 2011

Looking ahead to Thursday by reflecting back on Wednesday’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: 6/9/11 REPORTS TODAY: Crop Production, USDA Supply/Demand. Export Sales. Higher closes yesterday for rough rice,  soybeans, soymeal, soyoil,corn, oats, Minneapolis, Kansas City and Chicago wheat ahead of the big monthly reports. Of course the big news is concerning the Missouri river and how many acres of farmland could be flooded because it’s four feet higher than when the flooding took place back in 1993.  The wheat complex, looking toppy to me, settled with Minneapolis holding its support so (960 all the way down to 900 basis the July contract).  I’m still holding on to my buy signal but just barely. KC and Chicago are neutral for me as they continue to hold, albeit at the lower end, of their respective trading ranges that date back to March. Oats settled very strong but continuing to be neutral for me. There is good resistance between 385 and 405 basis the July contract. Rice settled one tick higher in a very narrow trading range for this grain still needing to hold 145(July) and take out its last high back on the May 25th for me to continue to hold on to my buy signal. Also, rice has good support between 140 and 145. Corn ran up the daily 30 cent limit a few times before settling over 27 cents higher in the old crop do to the Missouri problem mentioned above. Rumours are all over the place with as much as four million acres that could be affected and as low and one half a million. Who knows but it should hold up the corn for a while anyways. There is good resistance  from 750 up to 775 basis the July contract which it hasn’t been able to penetrate at least so far. The December(new crop) corn contract however, made its second best close of its uptrend and has strong support down to the 650 area looking much better technically than the old crop but around 70 cents cheaper. The bean complex settled higher with the beans continuing to holds support while the meal made its best close since March 31st after having a huge trading range along with giving me a BUY SIGNAL. I’m still standing aside for the beans and oil although both look like possible major bottoms are forming. BUY SIGNALS FOR MINNEAPOLIS WHEAT, ROUGH RICE, SOYBEANS AND SOYMEAL. CALL FOR DETAILS!

Sept/June rollover for stock index futures starts this Thursday, June 9. See my HOT TOPICS at my website (https://www.zaner.com/3.0/market_information/hot_topics.asp) for more information.

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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.