What’s Up, What’s Down: Spotlight on Grains and Meats – Mixed Signals Abound

Comments for Tuesday, June 15, 2010

Looking Ahead to Today by Reflecting Back at Monday’s Price Action


Higher closes yesterday  for oats, corn, soybeans, soymeal, soyoil, Minneapolis, Kansas City and Chicago wheat along with rough rice again. Minneapolis and KC made KEY REVERSALS last Friday which I failed to mention. Minneapolis is now in a resistance area while KC’s resistance begins over 485 basis the July contract.

All of the wheat continue to be in downtrends, however, although this could be the beginning of a bottom for Minneapolis and KC. Corn settled higher once again but its trend continues to be looking lower overall with strong resistance over 355 up to 375 basis the July contract. Oats made its highest high and close since late February ending up its 20 cent daily limit! Rice closed higher again but still looking the weakest of all the grains.

The bean complex closed higher again across the board. The beans are in a strong resistance area that goes up to 975 basis the July contract while the meal made its highest high and close since the beginning of May. Oil had a strong close but still looks weak overall. BUY SIGNALS FOR OATS AND SOYMEAL. SELL SIGNALS FOR MINNEAPOLIS, KANSAS CITY AND CHICAGO WHEAT ALONG WITH, ROUGH RICE, SOYBEANS AND SOYOIL.CALL FOR DETAILS!

Oats Chart

Corn Chart

Soybean Chart


Higher for live and feeder cattle feeder along with pork bellies and lean hogs. The cattle are forming a small base that can’t be trusted nor ignored. The overall trend, however, is still down while feeders are still close to a minor possible buy signal which could lead to a retracement up to the 11500 area basis the August contract. Hogs closed strong this time with resistance around the 8250 area basis the July contract. Bellies closed higher still looking lower overall at this time. SELL SIGNALS FOR LIVE AND FEEDER CATTLE ALONG WITH LEAN HOGS AND PORK BELLIES. CALL FOR DETAILS!

Live Cattle Chart

Lean Hog Chart

For my complete coverage, visit my commentary page at www.markethead.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.

The information in this Report and the opinions expressed are subject to change without notice. Neither the information nor any opinion expressed constitutes a solicitation by Rick Alexander or the Zaner Group of the purchase or sale of any futures or options. Futures and options trading is speculative in nature and involves risks. Spread trading is not necessarily less risky than outright positions. Futures and options trading is not suitable for all investors.

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