As the global markets are breaking across the board, grains were unaffected due to strong global demand from the BRIC counties. Things may have changed in the past month in the grain complex as December Wheat and Corn are down over 20% and 18% respectfully, and November Soybeans have dropped 14% since August 29th.

Corn futures started the week on a positive note with slight gains on Monday and a gap up open on Tuesday. The gap higher open on Corn set the daily trend to the upside, but quickly turned the other way into the closing bell. Corn prices continued to decline and took a major break Wednesday afternoon on heavy volume pushing prices near their new 40 cent price limit. The bulls ran for cover when priced broke below the monthly lows of August. Corn prices continued to decline into the end of the week, settling at the lowest price levels since the week of July 8th.

Soybean futures had been trading in a dollar range (13.00 – 14.00) since February and were finally able to break higher in late August letting prices to settle at the highest levels for the contract and year. Traders expected the bull rally to continue in Soybeans but were caught off guard as prices continued to decline from the start of the month. Soybeans picked up momentum Wednesday and Thursday when prices started to trade at monthly lows and below their major technical support of 13.00 per bushel. Volume was higher than Corn futures which is the heaviest volume traded grain. Soybean prices have been falling since the USDA Crop Production report was released over 2 weeks ago. With the high volume and heavy selling in Soybeans, prices on Friday settled the week at the lowest levels for the year.

Wheat futures have been the weakest grain for the year and they continued to peel back. Bulls expected Wheat prices to advance higher when they traded above their major price hurdle 8.00 per bushel in late August, but prices had the opposite effect and have fallen off a cliff for a month straight. Wheat prices were down every week in September. Wheat prices took their biggest hit on Thursday when prices broke through their yearly lows which was last seen in the first week of July. A year ago Wheat prices were at 8.00 per bushel and they ended the week at 6.4075 per bushel. Wheat and Soybeans are the only grains that are trading at their lowest levels for the year. Corn is holding up well and has strong trend line support on the weekly chart to suggest higher prices into the end of the year.

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