Recap of March 2012 for Corn, Soybean, and Wheat Futures Markets

Corn traders experienced a choppy month of February as prices stayed sideways until the end of month, when prices started to rally and closed the month on a higher note. With Corn closing at monthly highs, they were poised to continue the rally into March.

Volatility in the Corn market started to pick up as spread traders were trading Wheat against the yellow crop. Throughout the month, there was a constant battle as spreaders were trying to push Corn prices higher than Wheat. There were a few occurrences where Corn and Wheat would trade at the same price until spreads push their prices away from each other. Mid-month, Corn prices were in rally mode and prices traded at yearly highs but were unable to settle at those levels which prompted bears to step in to pressure Corn prices. During the last two weeks of the month, Corn prices tumbled heavily as major supports were being taken out and eventually traded below February lows causing Corn to create an outside month chart formation. Corn reached yearly lows around 6.00 per bushel, but a bullish USDA Grain Stocks report helped prices rally limit up on the last trading day of the quarter. With Corn prices trading all over the place, they settled the month at the lowest settlement for the year at 6.44 per bushel.

Wheat prices have been range bound due to spreading against Corn. Wheat traded in a 45 cent range throughout March and briefly traded at the lowest levels for 2012 ahead of a bullish report which sent Wheat prices rallying into the end of the month. While Wheat prices remained volatile, they ended the month on the lower side at 6.6075 per bushel, the lowest monthly close for 2012.

Soybean prices have been on a major uptrend as prices continue to advance on a daily and weekly basis. After a bullish USDA report was released in mid-January, Soybean prices have rallied nearly 3 dollars a bushel. During February, Soybean prices started to trade at yearly highs which carried into March. A bullish USDA Grain Stocks report helped push prices higher into the 14.00 price range on Friday March, 30th. With buyers continuing to load up on long positions, Soybean prices settled at the highest level since June 2011 at 14.03 per bushel.

The USDA also released their quarterly Grain Stocks report on the last trading day of the month. Corn stocks in all positions on March 1, 2012 totaled 6.01 billion bushels, down 8 percent from March 1, 2011. Soybeans stored in all positions on March 1, 2012 totaled 1.37 billion bushels, up 10 percent from March 1, 2011. Wheat stored in all positions on March 1, 2012 totaled 1.20 billion bushels, down 16 percent from a year ago.

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