The grain complex experienced a lot of market volatility in the month of April with Corn futures starting the month on an expandable limit of 45 cents after the USDA reported a bullish report, and roll over from May contracts into July. Corn futures hit their limit bid or offers at least once a week in April.

During the last week of trading, Corn had heavy liquidation on support weather in the mid west and profit taking as the price of corn has nearly doubled in less than a year. Corn sold off to hit their limit offer Thursday causing the CME Group to expand the limit to 45 cents once again on the last day of the week and month. Corn has also traded below the opening low made on April 1st. Friday morning; the Corn market shocked all the shorts as they rallied throughout the day giving up all the losses incurred the prior day. With the expandable limits, Corn traded up 32 cents at one point. After a volatile finish to the month, Corn futures settled at their highest levels since the summer of 2008.

This massive break in the Corn markets spilled over into the Soybean and Wheat pits. Soybeans traded below major weekly supports after buyers couldn’t take out a technical resistance at 14.00 per bushel. Soybeans also rallied on Friday voiding the losses from the previous day. Soybeans finished the week up marginally at 13.94 per bushel. Wheat futures started the week with a high of 8.65 and traded all the way down to 7.66 by Thursday afternoon helped by the selloff in Corn and Soybeans. Coming into the last trading day of the month, Wheat prices rallied, allowing them to close up for the month of April.

Summer months are approaching, trading grain futures have historically been correlated to weather conditions in major crop growing regions. Implement proper risk parameters during these volatile months.

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