What’s Up, What’s Down: Spotlight on Grains
Comments for March 17, 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
IS WHEAT SETTING UP FOR A RETRACEMENT RALLY?
GRAINS: 3/17/11. Export Sales Higher closes yesterday for Kansas City wheat, soybeans, soymeal and soyoil while lower for Minneapolis and Chicago wheat along with oats, rough rice and corn. Minneapolis had its lowest low and close since last December and also KC its worst low although the former finished only slightly lower.Chicago made its lowest low and close since July 2010! All of the wheat should be setting up for a retracement rally along with the rest of the grains but that doesn’t mean their trends will change. Rough rice and oats settled down again both making their lowest lows and closes since last September 3rd! Corn (May) dropped all the way down to 608 before rallying 8-9 cents ending up with its worst low and close since January 10th. However, it should hold the 600 area for a while and, like I’ve mentioned above, the grain complex should retrace higher in the short term. The bean complex finished higher this time but with no changes technically. Oil made its worst low since December 1st before settling higher. All of the grains are in downtrends at this time being helped along by Japan’s problems but this latest selloff has probably been overdone in the near-term. SELL SIGNALS FOR OATS, ROUGH RICE, CORN, SOYBEANS, SOYMEAL, SOYOIL, MINNEAPOLIS, KANSAS CITY AND CHICAGO WHEAT. CALL FOR DETAILS!
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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.