What’s Up, What’s Down: The Focus is on Grains
Comments for Friday, August 13, 2010
Looking Ahead to Today by Reflecting Back at Thursday’s Price Action
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:
Higher closes Thursday for corn, rough rice, oats, soybeans, soymeal, Minneapolis, Kansas City and Chicago wheat while lower for soyoil after the bullish crop production, supply demand reports. All of the wheat are still in uptrends with little support underneath near term which makes going long dangerous at their present levels unless trading options. Corn had its best close since January 11th being helped along by the wheat but has strong resistance up to 450 basis the December contract and HASN’T CLOSED OVER 450 SINCE JUNE 12TH, 2009!
I really feel corn will continue to be choppy with the bulls talking about wheat and China buying down the road while the bears will talk about the huge crop potentially on the way. I’VE LEARNED THROUGH AN AGRONOMIST THAT 75% of the people that he works with says the corn crop is equal to or better than last year while 25% say it’s worse but all agree that China should be a big buyer in the near future which could cause the grains to rise in price overall. Oats settled higher still in a strong uptrend overall. Rice ad a large trading range settling sharply higher starting to act like it might be finally bottoming. It must hold the 100 level basis the September contract. The beans and meal settled higher and oil lower this time off of strong meal/oil spreading but with no changes technically. All continue to look higher technically. BUY SIGNALS FOR MINNEAPOLIS, KANSAS CITY AND CHICAGO WHEAT ALONG WITH SOYBEANS, SOYMEAL, SOYOIL, CORN, OATS AND ROUGH RICE. CALL FOR DETAILS!
There has been a lot of talk and advertising for Gold exchange traded funds (ETFs). Do you understand the difference, from a trader’s point of view, between gold futures and gold ETFs? Download my comparative evaluation report at https://www.zaner.com/3.0/ralexGold.asp.
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.