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

Comments for May 4, 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


GRAINS: 5/4/11: Higher closes yesterday for rough rice, oats,  Kansas City and Chicago wheat while lower for Minneapolis wheat,  corn, soybeans, soymeal and soyoil. The wheat complex is stilI close to possible sell signals while the weekly charts are looking toppy and the daily heading towards being neutral as far as my signals are concerned. However, unless I get sell signals I will continue to stick with my buy signals at least for now. Key prices to watch in my opinion for the July contracts are Minneapolis (999 & 888), KC(977 & 965) and Chicago(865 & 765).  Rice made its highest high and close since February 22nd once again with little resistance overhead. Oats made their lowest low since March 27th before settling higher in reversal type action but still looking very bearish at this time. Corn made its lowest low and close since Mrach 31st filling more of its largest gap and now in a support area. The December corn contract did made a key reversal and double top the week before last and has a gap left down at 625 1/4. The May and July corn, likewise, still have two gaps left having filled part of the nearest one so far and, in my opinion, fill over 90% of them. The last gap not filled for corn, as far as I can tell, was back in 2009. Please call for details on how to deal with the corn gaps if you are interested. The bean complex also settled lower with the beans and meal down sharply. My sell signals are still in place for the beans and meal but I’ve decided to remove my sell for the oil and take a neutral stance for now. All three have been basically trading sideways since February. BUY SIGNALS FOR MINNEAPOLIS, KANSAS CITY AND CHICAGO WHEAT ALONG WITH ROUGH RICE. SELL SIGNALS FOR OATS, CORN SOYBEANS, SOYMEAL AND SOYOIL. CALL FOR DETAILS!

In early morning trading, my Futures HeatMap shows the Grains sector down 0.23% with all contracts lower except for Oats and Rough Rice. View the color-coded HeatMap at https://www.markethead.com/2.0.

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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.