Rice Futures pop, but they’ll be back.
February 23, 2011 Leave a comment
After hitting multi month, in many cases multi years highs over the past week or two most soft commodities have fallen heavily in recent days. As if by magic the G20 got a present in the guise of sharp falls in food futures, which stared around Feb 13 and was a coordinated attack, signaling the market makers and big prop desks in Europe Japan and Stateside decided to take some off the top and try and divert attention away from the recent huge rise in agricultural commodities prices since Bernanke bought his latest printer farm.
Take CBOT Rice futures, from a recent high of US$ 16.40 to around US$ 13.65 today. Or Indonesian crude palm oil, which is set to post its first monthly drop in 7.
Soybeans have fallen from US$ 1504 to 1280 or so over the last 11 days and CBOT Corn from 724 to 660 since yesterday.
However there is good reason supports will be found quite soon, and even more reason to believe some, if not all agri commodity futures will hit new highs over the course of 2011.
For CBOT Rice we’re looking to go long at 13.25 or so.
Soy will be a huge buy if it falls to 1200. We’re watching for a breach of 1288 as a sign of weakness, but if 1300 holds…then a rebound is very likely.
Buy at 630 for CBOT Corn