What’s Up, What’s Down: Spotlight on Grains
Comments for May 11, 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
SPOTLIGHT ON GRAIN FUTURES
5/11/11 (Reports today: CROP PRODUCTION. SUPPLY DEMAND): Higher closes yesterday for oats, rough rice soybeans, soymeal, soyoil, Minneapolis, Kansas City and Chicago wheat while one tick lower for corn (July). Although I have a sell signal for Chicago wheat, I’m basically neutral the wheat complex(higher closes 3 straight trading sessions) which includes Minneapolis and KC. Oats also settled higher 3 sessions in a row but continues to look bearish overall. Rice continues to hold a support area after settling higher this time which, basically, has been in a wide trading range since Februrary. For now I’m standing aside. Corn settled slightly lower looking like inter- commodity spread trading against the corn ahead of the crop report. There is still one gap left in the May, July and December contracts. Also, the December corn contract did made a key reversal and double top back in April that’s still in place. However, a possible top formation has been fading and the December contract needs to give me a sell signal soon if I’m even going to get one. The last gap not filled for corn, as far as I can tell, was back in 2009. The bean complex also settled higher but with no significant changes technically as far as I can tell meaning the bean complex has been trading sideways to lower over the last few months. SELL SIGNALS FOR CHICAGO WHEAT, OATS, CORN, SOYBEANS, SOYMEAL AND SOYOIL. CALL FOR DETAILS!
But in early morning trading, the Grains sector is moderate strength. My Futures HeatMap, a color-coded view of the eight futures market sectors, shows that Grains, as of 8:25 am Central this morning (May 11), are up a composite 0.22%, led by Wheat and Canola. To view the Heat Map, click, or type this link into your browser: https://www.markethead/2.0.com.
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.