Rough Rice Futures
Rice futures in the July contract is down 10 cents this Friday afternoon in Chicago, currently trading at 13.23, wanting to break out to the upside, in my opinion.
I'm not involved, however, I will be recommending a bullish position if prices close above 13.60 while then placing the stop-loss under the February 16th low of 13.06 as the risk is around $1,200 per contract plus slippage and commission. The grain market across the board remains very strong as we are hitting multi-year highs. I think rice will start to join the party as the volatility will certainly come back, especially as we enter the summer months. Historically speaking, rice can experience tremendous price swings. The risk/reward is in your favor to take a bullish position.
I believe prices are bottoming out around the 13 level, so keep a close eye on this market as we could be home soon. Prices are trading above their 20 and 100-day moving average, telling you that the trend is to the upside. I think the downside is very limited. If you have been following my previous blogs, you understand that all of my trade recommendations are to the upside as quantitative easing should continue to push prices higher.
TREND: MIXED - HIGHER
CHART STRUCTURE: IMPROVING
Coffee futures in the May contract broke a four-day winning streak ending lower by around 155 points at 133.15 a pound as prices hit a four-week high this week as a long-term bottom looks to have been established, in my opinion. I have been recommending a bullish position over the last month from around the 126 level. If you took that trade, continue to place the stop loss at the 106 area as an exit strategy. However, in next week's trade, I will raise the stop-loss; therefore, the monetary risk will be reduced. Continue reading "Futures Prices Continue To Push Higher"