Monday was set to be a volatile day in the grain complex as traders were looking to liquidate their long positions in all three grains as the market had rallied up for 2 weeks without a break. Corn and wheat were weak from the opening bell as traders and funds unloaded, and soybeans chopped around from positive to negative.

Liquidation carried over into Tuesday with corn being the weakest in the grain complex. Wednesday, things turned around right from the opening bell as funds stepped in to buy up the markets on weather reports. Extreme heat in Europe, Russia, Canada, and the US corn belt sent prices sky rocketing in all three grains. Wheat was heavily impacted by the weather report as Russia and Canada are major wheat growers. Corn rallied up as well on concerns of crop damage due to the hot weather. Pollination worries helped push the price of soybeans up as well. Thursday is when funds put pressure on the market as they bought an estimated 25,000 lots of corn and 22,000 lots of wheat. All components of the grain complex were trading at multi month highs. With a combination of fund buying and threatening weather, traders did not want to be short the market coming into Friday. Wheat futures took a major hit, as they opened lower as funds were looking to book profits coming into the weekend and did not want to have too much market exposure as weather could turn around over the weekend. Corn and soybeans had a very choppy and volatile day as they traded on both sides of the ledger.

During the closing period, all three grains picked up volume as traders were looking to either flatten positions or setup positions coming into the weekend on anticipation of a worsening weather report. All the grains within the complex ended the week and month up. Wheat was the biggest gainer followed by soybeans, then corn.

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