Activity seemed limited as the USDA crop production report was scheduled for release on Friday 8:30am CST. Wheat futures have been fairly quiet for the past couple months until they were able to trade above 7.0000 early in the month. Buyers were supporting that technical price on any minor dips. Wheat futures started the week off on continuous buying as they were approaching another key resistance at 8.0000. Wheat was able to break through during the night session on higher than normal volume.

Once the day session opened, Wheat sellers stepped in crushing prices causing longs to liquidate. For the reminder of the week, Wheat traded in a volatile choppy range of 20 cents. The USDA announced the report as being bearish for Corn and Wheat, however neutral for Soybeans. Surprisingly there was not too much volatility in the markets compared to last month’s report. The other two grains in the complex, Corn and Soybeans were fairly quiet through the week as they were range bound into the report. Even after the report was out, both grains stayed sideways with little volatility.

Wheat closed slightly lower than last week’s yearly high. Corn inched higher to have their highest close in four weeks. Soybeans finished the week on the lower levels of their range and down from last week’s settlement price. Due to the recent volatility in the grain complex, margins have been increased by the CME Group. Please contact your broker for updated margin requirements.

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