The start of the trading week was set to be calm as traders were positioning ahead of USDA report due out Tuesday 8:30 am CST. Traders and analysts were anticipating another bullish report carried over from the October numbers. Monday remained quiet as the grain complex traded in a small sideways range. One hour prior to the opening of the grain complex, the USDA report came out extremely bullish as expected.

Pre-market the grains were limit up, but once the opening bell rang, it was a different story. All grains opened higher but Corn and Wheat dropped after their initial gap open. Corn made a 27 month high at 605.00 but never saw that price again as longs ran to liquidate and sellers stepped in and sold the market on heavy volume. Corn kept getting pressed down throughout the morning as buyers stayed on the sidelines and let the sellers take charge. Corn lived up to the old saying “Buy the rumor, Sell the news.” Wheat futures also followed Corn to the downside as they were unable to hold the higher prices. Soybeans were the only grain that followed the fundamental report and opened couple ticks shy of limit up. Soybean prices were strong through the day as they stayed in the positive the whole trading session and were unaffected from the negative pressure from Corn and Wheat. Corn and Wheat ended their trading session in the red and below their yearly highs. Soybeans kept their strength into the close and settled up for the year on a contract high.

Throughout the week, Corn and Wheat prices continued to decline on selling pressure from longs liquidating and sellers adding to their shorts. Funds were the biggest sellers in the Corn and Wheat pits. Soybeans continued their advance, but met yearly resistance prices. Friday morning there were talks about China increasing their interest rates that resulted in a wave of panic across the futures industry. On the overnight session grains started selling off along with gold, oil, and the S&P 500. When the grain complex opened Friday morning, traders were scrambling to make sense of the news and how it would affect grain prices. That morning grains opened steady, but after hitting upside resistance sellers stepped in with heavy sell orders causing the market to collapse on increased volume. Soybean and Corn prices kept falling without a slight reaction. Soybeans and Corn ended their trading session limit down. Wheat prices sold off into the close but didn’t hit their limit down prices. Corn ended the week down and below October support price. Soybeans ended lower from the prior week’s closing price, but are still up for the year. Wheat prices also ended on the lower end of the week and settled below their 700.00 technical price support.

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