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Weekly Review - Grain Futures for January 31st - February 4th
By Pratik Patel   
February 09, 2011

The first of the month of February was an active week for the grain complex. All three grains (Corn, Soybeans, and Wheat) posted new contract highs and traded at their highest prices in nearly 30 months. Grains were being bought across the board on weather concerns and demand from China.

With incremental gains each day, Corn futures climbed higher throughout the week. When new contract highs were posted, bulls met sellers pushing prices lower into Thursday. After profits were booked with the selloff, buyers stepped back into the pits to rally Corn prices higher into the closing bell on Friday. During the last thirty minutes of trading volume started to pick up and prices rallied nearly fifteen cents making another contract high at 6.7950. Corn futures closed at the higher levels of their price range and at their highest levels since July 2008.

Soybeans traded briefly below their technical support price 14.00 on Monday, but were able to settle the day above, it giving bulls the buying indicator the needed. During the opening bell on Tuesday, buyers started lifting offers causing prices to advance significantly throughout the trading session. Soybeans hit a new contract high on Thursday at 14.5250 but settled the day at the lower levels of their range. Prices continued to decline into Friday’s closing bell on profit taking and spreaders pushing Corn higher and Soybeans lower. After a volatile week of trading in the Soybeans pit, they closed at their highest levels in two years.

Wheat futures have been a volatile grain since early December when prices were able to trade and settle above 8.00. Wheat continued to make new contract highs with the help of Soybeans on Thursday. The rally did not spill over into Friday, as prices traded lower for the session but did end the week on the positive side of the ledger. Wheat prices are trading at their highest levels in thirty months. On February 9th the USDA will release Crop Production, and Supply/Demand numbers at 7:30am ET.

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

 
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