What’s Up, What’s Down: Spotlight on Grains
Comments for March 16, 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 FINISH SHARPLY LOWER, COME ROARING BACK IN EARLY MORNING TRADING
GRAINS: 3/16/11: Sharply lower closes yesterday for Minneapolis, Kansas City and Chicago wheat along with oats, rough rice, corn, soybeans, soymeal and soyoil while lower for oats. The bottom fell out of the grain complex with Minneapolis and KC making their lowest lows and closes since December 1st and Chicago since July 28th of last year! The entire wheat complex blew through key support areas. Rough rice and oats settled down their respective daily limits with the former making its worst low and close since September 9th and the latter October 7th also from last year. Corn also ended up down its daily 30 cent limit making its worst low and close since January 12th giving me a SELL SIGNAL.The bean complex finished sharply lower with the beans(70 cents) and oil (250 pts) down their respective daily limits while meal finished sharply lower. The beans made their lowest lows and closes since December 1st and the meal December 13th. As bearish as all the grains look at this time, I exoect a sharp rally near term and then we’ll see what happens. Regardless, all of the grain are in downtrends at this time being helped along by Japan’s problems. SELL SIGNALS FOR OATS, ROUGH RICE, CORN, SOYBEANS, SOYMEAL, SOYOIL, MINNEAPOLIS, KANSAS CITY AND CHICAGO WHEAT. CALL FOR DETAILS
But in early morning trading, the Grains sector has come roaring back. My Futures HeatMap, a color-coded view of the eight futures market sectors, shows that Grains, as of 8:30 am Central this morning (March 16), is up a composite 1.97%, led by Wheat. To view the Heat Map, click, or type this link into your browser: https://www.markethead.com.
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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.