Monday was setting up to be a day packed with a lot of volume and volatility. Traders were eyeing weather reports over the weekend for continued extreme heat in the grain growing regions. If the weather calmed down, longs would run to liquidate to book a profit before farmers could step in and pressure the markets.

Once the opening bell rang, traders were scrambling to hit the bids. Weather related buying did not carry into Monday and the grain markets traded heavy in the red the whole day. Calendar spreads were heavily placed in the corn market as December traded 3 ticks above the major technical 400.00 price, and front month September was trading at a discount. Spreaders wanted to narrow the spread.

After a calm couple days, wheat futures started to pick up volume as buyers stepped in again rallying the market above key technical resistance level 600.00. After wheat spiked above that level, sellers stepped in and pushed it lower preventing wheat to close above 600.00. Corn swung in choppy sessions when they failed to break below major support price 373.00. Corn traders turned the heat on as they stepped in along with farmer selling and broke below support levels enabling corn to close down for the week and the month. Soybean futures attempted to cross prior week’s high price but failed. Soybeans were able to close in the green everyday this week, but missed closing up for the month by 3.50 points. Wheat futures stayed in a very choppy and sideways direction until Friday, as it was the most volatile grain within the complex to end the week. Wheat traders were looking to stay flat coming into the weekend as there was still uncertainty about weather conditions in prime wheat growing regions. After a volatile week, wheat was able to close up for the fourth consecutive week.

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