As the end of the year approaches and many commodity markets are down for the year, there is still hope for Corn futures. Corn is the only grain in the complex that is trading in the positive for the year. October turned out to be a lackluster month with Corn, Soybean, and Wheat futures trading sideways which rolled into the first two weeks of November.

Traders were waiting for the highly anticipated USDA supply/demand report numbers which they hoped would put some action in the grain complex. Although the report came out bearish as most traders expected, markets did not sell off heavily as they would have in the past. Soybean and Wheat futures started to hit negative territory for the year in early October but bounced off those lows into November. During the last two weeks of November( with low volume due to the holiday trading schedule) Corn, Soybean, and Wheat continued to decline in prices on technical pressure and uncertainty over the Euro Zone issues.

November Soybean futures took their biggest break in prices on the eve of Thanksgiving on extremely light volume, putting them below December 2010 price levels. With Soybean settling the month at 11.0650 per bushel, they are trading down for the year and well off their summer month highs, where prices reached 14.7450 per bushel. March Wheat futures took over as the front month contract during the third week of November. With the macro trend of Wheat down, prices continue to sell off on technicals and spreading against Corn prices. Historically Wheat has traded at a premium to Corn, but for the past couple years the demand for the yellow crop has caused prices to surpass Wheat prices. With global uncertainty and weak sales, Corn prices have started to converge back to historical spread ratios. March Wheat ended the month down with a settlement price of 5.89 per bushel, putting them under a major support level, 6.00.

Corn futures rolled their December contracts into the front month March during the same time as their neighboring grain, Wheat. Corn prices are holding their gains for the year, but are facing major selling pressure from traders. On the 23rd Corn prices got hit with major selling pressure as they traded near the prior month’s low, but were able to technically bounce off October’s low of 5.86 forming a double bottom chart formation on the daily charts. With Corn prices down for the month, they are facing yearly lows coming into the last month of 2011. Corn prices ended the month down at 5.90 per bushel, the lowest closing price since March.

*1 bushel of Corn, Soybean, and Wheat equals 5,000 pounds.

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