Traders were looking to square positions during the first couple days of the week as the USDA was set to release their supply and demand crop report Thursday morning. The peculiar action happened Wednesday afternoon as Corn futures rallied on huge volume, and hit their daily limit up on the eve of the report day.

Usually markets are quieter a couple days prior to the USDA reporting their numbers. Soybeans and Wheat were lackluster, as Corn kept popping higher. On Thursday morning, two hours before the opening bell, the USDA reported bullish numbers for Corn and Wheat futures, while Soybeans were seen bearish. Once the opening bell rang, Corn and Wheat rallied out the gates, while Soybeans fell. After a couple minutes, Wheat surprisingly started to break, while Corn kept rallying higher. Wheat traders were buying the rumor, and selling the fact as wheat prices went down into the negative side of the ledger.

Corn continued to rally into Friday and missed the psychological resistance price of 8.00 a bushel by 1 tick. Corn hit an all time contract high of 7.9975 during early morning trading, but gave away those gains into the closing bell. Corn futures settled at the highest levels($ 7.87) since 2008. Soybeans and Wheat futures were erratic into the end of the week and settled the week mixed.

The next USDA supply and demand crop report is scheduled for July 12, 2011.

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