Rice is Rising

ZRH9 (Rough Rice)
Buy on break above 1426 stop below 1330 target 1559 - 1669

While reviewing grains chart it caught my eye that when all other grains (wheat/soy bean/corn/oats) are making new lows and plunging further, rice seems to be the one which has bounced off smartly and also resisting any down days in other grain complex. Rice has bounced off a long term support and therefore some upside could be possible. I am watching if Rice breaks above 1426 or if 1330 level is not breached before entering the trade.

Since fundamentals come in charts first I will also keep an eye on any fundamentals developing.

Point to note is that rice is bit illiquid on CME and therefore can easily be manipulated so it pays to be on the right side of the manipulators. For the same reason I would look to trade March 09 contract (ZRH9) and not the front month Jan 09 contract (ZRF9).

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