Soybean meal prices have rallied $42 per ton over the past few weeks. On June 9, 2010 technical analysis signaled traders and livestock producers alike to expect prices to turn back up. Technical analysis is the study of market movement. Its strength and popularity comes from the explicit assumption that future price direction can be […] Read more
Drozd: A “two day reversal” alerts livestock producers to hedge meal
Drozd: Oat prices explode on a short covering rally
Although the oat futures market is the most thinly traded cereal grain market in Chicago, it still provides reliable chart patterns and technical signals on when to buy and sell. Reading a chart is much like reading a road map. It tells you where prices are going to go. Let’s begin this journey at the […] Read more
Drozd: Technical signals warn investors of impending collapse in stock market
On May 6, the Dow Jones Industrial Average (DJIA) suffered a severe 1,000 point drop that sent shockwaves around the world. To this day, investors from far and wide have been trying to understand why. Ludicrous rumours surfaced, one being that someone had accidentally entered an order to sell a billion instead of a million. […] Read more
Drozd: Two-week reversal alerts traders to seasonal spring rally in MGEX wheat
Fundamentally, wheat prices have been under a lot of pressure, due in part to a large world supply and a declining euro. Just as prices on the nearby wheat futures contracts at all three U.S. exchanges posted a new low for the recent move, wheat at the MGEX formed a two-week reversal. This reversal indicated […] Read more
Two-Month Reversal Warns Of Euro’s Impending Collapse
Reading Time: 3 minutes It’s been four months since the euro peaked and investors are only now learning the reason for its devaluation. CURRENCY Euro’s recent drop means lower wheat values in North America If you don’t think the failing euro doesn’t affect your bottom line, think again. Since the end of November 2009, the euro has lost about […] Read more
Drozd: Two-month reversal warns of euro’s impending collapse
If you think the failing euro doesn’t affect your bottom line, think again. Since the end of November 2009, the euro has lost about 12.5 per cent of its value relative to the U.S. dollar index and 15 per cent to the Canadian dollar — and this devaluation caused North American wheat to become uncompetitively […] Read more
Drozd: Canola market breaks down after failing to push through resistance
The rally that began in the canola market with the delayed harvest is over. The chart patterns were textbook-perfect in predicting the inevitable, which was for prices to peak in early January and turn lower. It all started with prices breaking down below the line of support (A on the attached chart)* in December 2009. […] Read more
U.S. Dollar Index Carves Out A Bottom, Readies To Rally Further
Reading Time: 3 minutes The U.S. dollar index shows signs of bottoming and it’s only a matter of time before it strengthens further. Prices could occasionally have a correction back down to alleviate overbought conditions, but I wouldn’t expect the weakness to last. A two-week reversal, occurring at the recent low in early December, was one indication the U.S. […] Read more
Drozd: U.S. dollar index carves out a bottom, readies to rally further
Jan. 7 — The U.S. dollar index shows signs of bottoming and it’s only a matter of time before it strengthens further. Prices could occasionally have a correction back down to alleviate overbought conditions, but I wouldn’t expect the weakness to last. A two-week reversal, occurring at the recent low in early December, was one […] Read more
Drozd: Canadian dollar fails to reach par
Dec. 10 — The Canadian dollar was supposed to go par. At least this was the hype when the market peaked at US97.98 cents on Oct. 15. When a commodity makes the headlines of major newspapers and magazines, it is often a tell-tale sign that it is near the end of the rally. When most […] Read more
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