With grains trading at multi year highs and the quarterly USDA crop report due out Thursday morning, markets were poised for a lot of volatility. Buyers continued the buying pressure in both Corn and Soybeans as they pushed prices to new yearly highs. After the initial advance in Corn and Soybeans, prices started to retreat lower when the buying pressure subsided after making new highs. Volume dried up and longs retreated as funds stepped in to sell heavy on technical selling.

Corn took the biggest hit, closing in negative territory below technical weekly price of 520.00. Action in wheat futures has phased out after the initial rally from July. Wheat has been trading range bound for about 2 months, and received downside pressure after trading below 700.00. Through Thursday all grains were trading lower on hard selling from funds and technical down trend formations. Trading eased up on the eve of the USDA report. The report was released at 8:30 CST Thursday morning with extremely bearish numbers for Corn and Soybeans, but mixed for Wheat. Corn and Soybeans felt the selling pressure from the opening bell. Thursday was an extremely volatile day after the report was released, as all 3 grains in the complex were down in the morning, but started to uptick as buyers were trying to pick bottoms. Soybeans managed to close the day in the black, while Corn and Wheat were in the red.

Selling continued into Friday when Corn took the lead to the downside, getting pressed from the bearish USDA numbers and technical selling. Soybeans followed in the footsteps of Corn and also were hit hard by sellers. Wheat has little action but also traded lower as there was a broad based sell off in the grain complex. Corn futures managed to settle limit down for the first time since January 12, 2010. Soybeans fell close to 50 points with the help of Corn being limit down. *Limit down/up is the maximum amount by which the price of a commodity futures contract may decline or advance in a trading day. Some markets close trading of contracts when the limit down/up is reached. Wheat futures closed the month of September lower. Both Corn and Soybeans finished the month up which puts both grains up for the year.

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