Comments for October 22, 2009

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LOOKING AHEAD TO THURSDAY BY REFLECTING BACK ON WEDNESDAY'S ACTION

Focus today on Grains and Meats: Bean breaks out of a Bull Triangle and Cattle's Double Bottom has significant meaning.

GRAINS: 10/22/09 Hogher to sharply higher closes yesterday for Minneapolis, Kansas city and Chicago wheat along with corn rough rice, oats ,soybeans soymeal and soyoil. All of the wheat continue showing bottoming signs making new recent highs and closes along with oats, soybeans and soyoil. The lower dollar (new contract low and close and delayed harvest conditions due to wet weather have helped rally the the grains along with thge funds doing some significant also despite this being the largest corn crop in history. Most of the farmers that I've talked to consider the latest grain rally a gift. However, I still base my decisions off the technicals learning from experience the worst losses that I've taken came from trades that I had the strongest convictions. Beans broke out of a BULL TRIANGLE looking strong along with oil while meal lags behind but still is also in an up-trend. Corn continues heading towards the 400 area basis the December contract and oats had another good close. Only rice is neutral overall basically in a trading range between 13500 and 14500 since the beginning of August. Buy Signals for Wheat, Corn, Oats and the Soybean complex.

MEATS: 10/22/09   Higher closes Wednesday for live and feeder cattle along with lean hogs and pork bellies. The overall trend for live cattle is starting to turn up but not yet for the feeders although both made new recent highs and closes.The December cattle's double DOUBLE BOTTOM now has significant meaning as the cattle keep moving higherat contract lows continues to hold and now I have a BUY SIGNAL.The feeders had a huge trading range today settling in the upper half but still looking very weak overall. Hogs also had a huge trading range but making its lowest low and close in 8 trading sessions. Now the key price in the December contract is 5200. Bellies had their lowest close in over a week with 8000, basis the February contract, a key area to hold at this time.

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