GRAINS: 04/23/09 Higher closes last night for old crop soybeans, soymeal, Minneapolis, Kansas and Chicago wheat, mixed for oats while lower for new crop soybeans, soyoil and corn. Wednesday’s action was very interesting for the wheat complex. Minneapolis closed sharply higher actually starting to turn back up which should really be no surprise if you've been following my comments over the few weeks. KC and Chicago, however, continue to look lower overall at this time. Corn started higher and ended up lower changing nothing technically since its basically in a trading range between 360 and 390 basis the May. Don't get chopped up attempting to buy rallies and/or selling breaks along with buying puts or calls until corn breaks out one way or the other. I imagine the crop progress reports will have a big say in what direction corn takes. Rice settled lower after briefly trading over 130 basis the May contract. Now it’s back it the 120-130 trading range basis the May contract. Still, if taking a position it should be from the long side at this time. Oats settled lower for the 7th time in 9 trading sessions still in a downtrend overall although it has been attempting to stabilize for a couple of months. Beans and meal both had higher closes acting like they will soon test their recent highs while oil, although in a uptrend also, has been dragging lately. I am holding Buy Signals for Beans and Soybean Oil.
MEATS: 04/23/09 Cattle has been mainly trading sideways since the end of January although it is attempting to form a bottom. Feeders, however, continue to hold up well and should continue working higher overall. Hogs settled lower but did rally to close well off its lows and may see some follow through higher tomorrow although they're still in the middle of its range since the beginning of March. Hogs do look like they're in a large bear triangle especially if looking at the weekly chart acting the weakest of all the meats. Bellies closed higher still holding a minor support area but hurt from Monday's sharply lower and should work lower to the8000 area basis the May contract. I have Buy Signals for Cattle and Feeder Cattle, and a Sell Signal for the Bellies. Call for details.
LUMBER: Lumber settled higher this time needing to hold the 170 area basis the May contract and close over 180 to resume its uptrend. Meanwhile, I'm removing my weak sell signal since lumber is forming a potentially larger one. It's long term trend is still down but, as you can see, lumber has been working on bottoming since the end of January.
COCOA: I am maintaining a sell signal for July Cocoa.
SUGAR: Sugar closed higher again following through from Monday's reversal type action still in the upper half of a trading range(1300-1400 July) going back to early February. Now you know the parameters. Until I see a breakout in either direction I probably won't have a trade.