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

Comments for February 9, 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

THE BULL OUTLOOK FOR GRAINS

GRAINS: 2/9/11: CROP PRODUCTION. USDA SUPPLY/DEMAND Higher closes yesterday for Minneapolis, Kansas City and Chicago wheat along with rough rice, soybeans, soymeal and soyoil while lower for oats and corn ahead of the all important monthly crop production and supply/demand reports. Add to this China’s dry weather affecting their wheat crop and the need for corn and who isn’t bullish?. A bearish report could be devastating in the short term but, either way, the longterm outlook remains bullish for the grain complex. Minneapolis, KC and Chicago wheat continue to be in strong uptrends with Minneapolis making its second best close since August 2008, KC its best high and close since June 2008 and Chicago a new CONTRACT HIGH AND CLOSE. Oats and corn settled down slightly but remain very strong overall. The bean complex closed slightly higher also, as we all know, in longterm uptrends also. BUY SIGNALS FOR CORN, SOYBEANS, SOYMEAL, SOYOIL, MINNEAPOLIS, KANSAS 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.