After one of the most volatile weeks of trading in the grains complex, traders didn’t know what to expect on the opening bell Monday morning. Longs were caught off guard with Corn, as prices didn’t continue to move higher after hitting two limit up days. Selling pressure continued into the Corn market following Friday’s end of week sell off. The decline in prices continued until Corn hit a double bottom chart formation on Wednesday.

Prices advanced on the overnight session, and when the day session bell rang, Corn advanced as shorts were looking to cover when Corn started making new daily highs and was approaching weekly resistance prices. With Corn being down 5 days in a row, shorts were scrambling to cover their positions and longs kept lifting the offers higher. Corn eventually hit their 30 cent limit price but was unable to settle there. Corn wiped out all the losses they experienced for a week in one single rally. However, that rally did not continue into the rest of the week. Prices started to retreat lower for the next two days, and they hit a lot of selling pressure on Friday as bears wanted prices to close below the weekly opening price of 561.50, which they did. Corn futures ended the week marginally down by a few ticks.

Soybeans traded in a choppy sideway direction into Wednesday, when strong export numbers were released, which sent prices higher above a major technical resistance price of 1200.00. For the first time since 2008, Soybean prices traded and settled above 1200.00. Through the end of the week, Soybean prices attempted to trade below the resistance but couldn’t break lower. What was a major resistance, has now become a support level for Soybean prices. Soybeans gave away some of their gains into Friday, and closed 2 ticks below 1200.00. Soybeans once again closed higher for the year.

Wheat futures have been trading on a lot around their technical support price 700.00. For the first time, Wheat was able to trade and settle below their technical support price 700.00 a bushel. Having closed below 700.00 level, sellers saw this as an opportunity to continue selling into the week. Prices continued to decline throughout the week. Even with Corn and Soybean price advance on Wednesday, Wheat resisted the rally by forming an inside day chat formation. With that technical formation, bears continued their selling pressure into Friday, enabling Wheat to settle down for the week. Starting Monday 10/25/10 soybeans will switch over to the January 2011 (F1) contract as their front month.

To learn more from Pratik and the guys at The Futures Room, visit their site at TheFuturesRoom.com