With a couple weeks left for 2010, the grain complex is trading at multi year highs with the help of speculative funds adding to their long positions, and a flow of fresh money coming in as commodities have been on a boom since the summer.

Corn futures were able to break above major technical resistance 5.8000 after the opening bell on Monday. Corn was trading at monthly highs, creating volatility to pick up during the week as traders who sold Corn contracts ran to cover their positions while buyers lifted offers. 6.0000 cents a bushel has been a pivotal price point for Corn since the macro rally started beginning of the third quarter. Once Corn was able to trade above 5.9000, bulls started eyeing the next handle with technical trend line support helping lift prices. Corn ended the week at their highest level in twenty-eight months. The next price level bulls want to break through on Corn will be 6.2000.

Soybeans followed Corn, as prices also rallied throughout the week. Soybeans were finally able to break through and settle above their technical price 13.0000. Throughout the week, there was a tug-of-war between bulls and bears around the 13.0000 price. Soybeans were unable to settle the week above their resistance price, but did manage to close at their highest levels for the year. Starting December 27th, Soybeans front month will switch to March (H).

Wheat futures were on the defense the whole week as prices started to retreat lower from the opening bell Monday. Spread traders were unwinding their long Wheat / Short Corn position which added volatility to the grain complex. Wheat continued to precipitously decline while Corn advanced. Wheat got pressured lower after breaking their prior week’s low. Wheat futures ended the week on the lower level of their range. Although Wheat has lost momentum, prices are still trading at the highest levels of 2010. Markets will close on Friday December 24th in observation of the Christmas holiday.

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