With Corn and Soybean trading at multi month highs, Monday was poised to be another positive day for the grains. The Complex initially started the week with a modest rally only to get taken away into the close as funds started selling 7,000 lots into the rallies causing buyers to second guess to overall direction of the market.

Throughout the rest of the week Corn continued to trade lower, pressured by fund selling and technical pressure as each day. Corn formed the lower lows/lower highs trend, finally breaking it on Friday when they were unable to make new daily lows. Buyers stepped in early, covering all their shorts and reversing their positions. Volume also picked up across the board as technical traders stepped in to buy on breakouts. A technical breakout can be defined as when a price closes above a price that had been a resistance. Corn rallied to monthly highs into the close and settled up for the year as well.

Soybean futures traded alongside Corn for the whole week. The Soybean pits were quiet until Friday when traders stepped in and pushed the market above monthly resistance levels which accelerated prices even higher and into yearly highs, trading above 2007 prices. Wheat futures traded lower for the whole week, only to get a short covering rally on Friday. Wheat joined the other two grains in the complex, but the buying pressure wasn’t enough as Wheat formed an inside day formation to end the week down. Wheat closed at their lowest levels for the month and is facing technical support price 700 a bushel. Corn and Soybean futures are both trading above 2007 levels.

The USDA quarterly grain stocks report will be released September 30th. Click Here to Access It.

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