With both corn and soybeans closing up for the month on Friday, the start of the week turned out to be a choppy session in both grains as they made an outside chart formation and ended the day on the lower end of their range. Wheat futures were pressured right from the start, as they broke weekly and monthly support levels.

Wheat was able to trade below the August monthly low and settled at the lowest level for the month. After all the rumors and fundamental news was out about wheat, the longs wanted to book a profit and wait on the sidelines for the next move. Soybeans had a major technical resistance at 1050.00 a bushel and when prices couldn’t break it, prices started to trade in a choppy direction as buyers and sellers were fighting to set a trend in the market. Corn continued to advance slowly throughout the week as buyers stepped in on dips to rally corn up every day to make new daily highs. The technical set up continued to develop in corn each day as higher highs and higher lows were made. Even though corn made a new daily low on Friday, they were able to rally into the closing period to post an up day and also up for the week and month on high volume.

When soybeans were unable to hold the higher prices, they started to retreat everyday breaking down to another technical price level of 1000.00. Soybeans held the support by 2 ticks on Friday to finish the day down and also closed the week and month down. After the initial break on Monday in the wheat pits, wheat was pressured throughout the week on light volume which caused wheat to trade in a sideways choppy direction until Thursday. Wheat was rallied above the technical price of 700.00 which brought buyers back into the pits. With the rally in wheat, they were able to close up for the week but down for the month. After the rumors about wheat phased out, volume and volatility also decreased across the board in the grain complex. The CME Group also increased the margin requirements in wheat they started to get volatile.

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