Grain futures traders are patiently waiting to hear the USDA supply and demand report which is scheduled to be released on Thursday August 11th before the opening bell. Traders expect the USDA to cut their output estimate in the monthly report due to poor weather.

December Wheat futures have been trading in a price channel of 7.20 – 7.50 per bushel. Wheat will experience deviations from the range, but will revert back throughout the week. Wheat had a modest rally Tuesday morning, allowing prices to break above the weekly resistance 7.50. The rally was fueled by profit taking, and buy stops getting triggered that were placed above key technical resistance levels. Wheat ended the week slightly up from previous weeks. Coming into the next couple weeks, traders will roll out of their September positions into the December contract. Wheat traders should remain cautious of spreaders in the market.

Soybean futures have been volatile as prices are forming bigger daily swings. Soybeans have held a price floor at 13.50 for over a month, but were broken when sellers loaded up and pressured the markets into Friday’s closing bell. Prices settled the week at their lowest levels since early July. The next price support for Soybeans will be 13.00 per bushel.

Corn futures rallied Tuesday morning on speculative buying and technical breakouts as prices were trading above weekly and monthly highs. Corn futures were able to advance above 7.00 per bushel causing prices to settle limit up on Tuesday afternoon. Throughout the week, buying interest dried up and prices fell, as bulls took profits. Although Corn prices retraced into Friday, buyers stepped in during the afternoon to rally Corn above 7.00. Corn settled the week at 7.03, which is the highest close since June 8th. The CFTC approves the CME Group’s plan to increase the trading limits for Corn. Currently Corn has a 30 cent price limit, starting August 22, the price limit will rise to 40 cents.

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