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Weekly Review – Grain Futures for November 1st – November 5th |
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By Pratik Patel
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November 09, 2010
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With two months left for the trading year and grains trading at multi year highs, it’s not a pretty picture for the bears in the grain complex. Traders are waiting for the USDA report to release their crop numbers on Tuesday, November 9th. Usually pre report, grains will have low volume and activity as the direction of the trend can be uncertain even though the major trend is up on all three grains.
Corn futures were fairly inactive the whole week as they traded in a tight sideways pattern. Corn was facing contract high resistance at 588.00, but those were taken out on Thursday during the close as Corn rallied higher into their highest close price in 2 years. Friday activities were limited to a right range as traders were waiting on the sidelines for the USDA numbers. Corn finished the week up, also at yearly highs. Corn would need to settle above 647.00 to reach their highest levels in the past five years. Soybean futures behaved in a similar fashion to Corn as they also rallied higher on Thursday. Soybeans gained nearly 37 points that day alone, putting them at their highest levels in two years and also making a new contract high for the January month. The momentum continued into Friday allowing soybean prices to close up for the week and the highest in two years.
Wheat futures were the most active within the complex. Prices were pressured to start the week, falling nearly 48 points to Wednesday. Wheat followed their neighbor grains Thursday in a rally mode as prices broke through their 700.00 resistance price and gained close to 23 points that day alone. The rally continued into Friday, with prices settling at their highest level since September 20th. Wheat futures are slightly down from their yearly high price but they are able to settle up for the year. The U.S. Department of Agriculture will release their supply-and-demand report on November 9, 2010 at 8:30 CST, an hour before the opening bell in the grain complex.
To learn more from Pratik and the guys at The Futures Room, visit their site at TheFuturesRoom.com |
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