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| 5 Hot Picks by Lee Gaus of EFG Group | |
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 Lee Gaus has thirty years of experience in the commodities industry. In 1992, Lee established EFG Group along with his two partners who are long-time friends. Since then, Lee has traveled the U.S. conducting seminars and trading meetings for retail traders and commodity offices. |
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Dec Kansas City Wheat/Dec Chicago Wheat
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My favorite spread at this time is Buying December Kansas City Wheat/Selling December Chicago Wheat. More aggressive traders can consider getting the initial position on at the market, while more risk adverse traders may want to wait until the Kansas City December Wheat is trading at a 29 cent premium to the Chicago December Wheat.
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I believe looking at being long Chicago December Wheat and short December Corn has some merit. Aggressive less risk adverse traders may want to consider putting this trade around a $2.90 premium wheat to corn, and more risk averse traders may want to wait until around $2.75.
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Dec Soybean Oil/Dec Soybean Meal
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If you prefer spread trading you may want to explore a more sophisticated trade by Buying 3 December Soybean Oil and selling 2 December Soybean Meal contracts at around the -5400 level.
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For those that want straight long or short recommendations take a look at selling December Coffee around the $138.90 level.
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| Continuing with the straight long short thoughts, you may want to look at selling December Gold. Aggressive traders may want to look at the 815 level, while more conservative traders mat wish to with until 838.00.
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| 5 Hot Picks by Phil Flynn of Alaron | |
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| Phil is Vice President, Energy and General Market Analyst with Alaron Futures and Options and is one of the world's leading energy market analysts. His market commentary, fundamental and technical analysis, and long-term forecasts are sought by industry executives, investors and media worldwide. |
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The Crude correction is set to continue. This market is exhibiting extreme weakness and cannot even rally on what should be bullish fundamentals. This market is ignoring Hurricane Fay, Iran's missile launch, Russia in Georgia and violence in Nigeria. If that can't rally this market maybe nothing can. Sell Crude Oil On Rallies in October around the115 area.
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Gas has made a major correction as seasonal factors continue to weigh on the market. Still it looks like we have fallen too far too fast and we should bottom mid week. Look to buy call option early this weak and take advantage of the markets weakness.
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All that glitters but not the gold. Gold has put in a major top that could see us head longer term to the $650 area. Still this week the key is $777 in the gold. If we break that area it will probably be look out below. If we hold then we could see a recovery to 850. Bulls will buy the breaks but reverse if we take out $777.
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The great Corn Collapse. This year corn had a record year soaring on floods and a surge to meet bio-fuel demand. Yet it seems that we got ahead of ourself and the USDA says we will have the second largest corn crop in history. At 12.3 billion bushels that is shy of last years record by 6% but up 17% from 2006. Barring any late breaking news that means corn needs to hold $500 or we can go to $450.
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The Road less traveled. RBOB gasoline futures are getting hit with the reality that high prices indeed cure high prices. Americans traveled 12.2 billon miles less than the year before according to the IEA. That will pressure RBOB futures which are coming into a key support level at 27700. If RBOB takes out that key level I would expect a washout to at least the $235 range. Get short or buy puts.
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