TRADING COMMODITY FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES, KNOWLEDGE AND FINANCIAL RESOURCES. 

GRAIN TECHNICALS: CORN, SOYBEANS, AND WHEAT

This article will focus on my technical indicators and the potential effects on the grains.

MY TECHNICAL ANALYSIS

Technically, according to this monthly chart on CME CORN FUTURES, I see the 20 period SIMPLE MOVING AVERAGE (the red line) pointing up on a sharp angle and the market holding above the line. This, in my opinion, indicates a LONG-TERM SUPER-TREND higher. It's an upward trend in the long-term since it's a monthly chart where each bar represents a month of trading. So according to my technical study on this CORN chart the 20 period SMA is now very critical long-term support and a strong close below the SMA with follow through could potentially indicate a change in the LONG-TERM trend. See monthly chart below.

For Our Free Zaner Report On The LONG-TERM SUPER-TREND Study Click Here:  http://zaner.com/3.0/mmckSuperTrend.asp

 Technically, I see SOYBEAN FUTURES in a SHORT-TERM SUPER-TREND higher on this daily chart as the market trades above the 9 day MOVING AVERAGE and the 9 day MOVING AVERAGE has crossed over and is above the 20 day MOVING AVERAGE as these indicators both point upward on fairly steep angles. Please note each bar represents a day of trading and notice how on on friday February 10th (the last bar) the market traded below the 9 day SMA (the red line), but rallied and closed above it. See daily chart below.

FOR OUR REPORT ON OPTIONS ON BEANS FOR PEOPLE WHO DONT KNOW BEANS ABOUT OPTIONS CLICK HERE:  http://www.zaner.com/3.0/mmck2.asp    

Technically, the CME WHEAT market, according to my technical indicators, has changed dramatically. This is a daily chart, so each bar represents one day of trading and in the last two days the market has gone from a SUPER-TREND higher to a market that has fallen below two critical areas of support. On February 8th, 3 trading bars ago or 3 trading days ago, the WHEAT market was in a SUPER-TREND higher as the 9 day SMA was above the 20 day SMA, they were both pointing upward on sharp angles AND the WHEAT market was holding and trading above the 9 day SMA. Then came the collapse when the market fell from a high of 6.70/bushel on Fehruary 8th to a low of 6.28/bushel on Feruary 10th, Friday-the last bar on the chart. also notice the heavy volume seen at the bottom of the chart on the sell-off. See daily chart below.

FOR OUR FREE REPORT ON HOW WEATHER CAN IMPACT THE GRAINS MARKETS CLICK HERE: http://www.zaner.com/3.0/mmckweathermatters.asp

 Additional charts, studies, and commentary on CORN, SOYBEANS, WHEAT, morning commentary, and more click here: http://markethead.coM/2.0/free_trial.asp?rid=McKinney

Here at Zaner we have a Hedge Division that can present Agri-Hedge strategies with both futures and options and a combination of the two taylored to suit your specific risk management needs. Feel free to contact me directly at 312-277-0115 or mmckinney@zaner.com .  

FREE QUOTE- "Yesterday is history, tomorrow is a mystery, and today is a gift-that's why they call it the present." -Mike Dikta

Futures, options and forex trading is speculative in nature and involves substantial risk of loss. All known news and events have already been factored into the price of the underlying commodities discussed. The limited risk characteristic of options refers to long options only; and refers to the amount of the loss, which is defined as premium paid on the option(s) plus commissions.

FOR CUSTOMERS TRADING OPTIONS, THESE FUTURES CHARTS ARE PRESENTED FOR INFORMATIONAL PURPOSES ONLY. THEY ARE INTENDED TO SHOW HOW INVESTING IN OPTIONS CAN DEPEND ON THE UNDERLYING FUTURES PRICES; SPECIFICALLY, WHETHER OR NOT AN OPTION PURCHASER IS BUYING AN IN-THE-MONEY, AT-THE-MONEY, OR OUT-OF-THE-MONEY OPTION. FURTHERMORE, THE PURCHASER WILL BE ABLE TO DETERMINE WHETHER OR NOT TO EXERCISE HIS RIGHT ON AN OPTION DEPENDING ON HOW THE OPTION'S STRIKE PRICE COMPARES TO THE UNDERLYING FUTURE'S PRICE. THE FUTURES CHARTS ARE NOT INTENDED TO IMPLY THAT OPTION PRICES MOVE IN TANDEM WITH FUTURES PRICES. IN FACT, OPTION PRICES MAY ONLY MOVE A FRACTION OF THE PRICE MOVE IN THE UNDERLYING FUTURES. IN SOME CASES, THE OPTION MAY NOT MOVE AT ALL OR EVEN MOVE IN THE OPPOSITE DIRECTION