GRAINS: 12/09/09 Higher close yesterday for corn but lower for soybeans, soymeal, rough rice, corn, Minneapolis, Kansas city and Chicago wheat. All of the wheat made their lowest lows and closes in a month while now in their respective support areas. With the dollar holding and energies working lower corn has been falling somewhat grudgingly which is why it's no surprise to see them close higher off of spread trading against the beans and wheat due to bad weather forecasts that will hamper the harvesting of what's still out there(10-12%). Rice settled sharply lower for the first time in a while still in an up-trend and now in a strong support area but potentially at the beginning of topping action. Oats made its lowest low and close since October 12th this time but made its lowest close early October with little support down to the 240 area basis the March contract. The bean complex is still in a uptrend but did close lower again off of spread treading as mentioned above. However, beans, meal and oil are in uptrend and have been consolidating since the middle of November. O hold Buy Signals for the Soy complex; Sell Signals for Wheat, Corn and Oats.
See the balance of my morning comments, including the Softs, Currencies and Meats at my website. For my complete coverage, visit my commentary page at www.markethead.com/2.0
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.
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.
