Summary:
Volatility is alive and well in the Soybean complex. The month of July is officially done as far as trading is concerned closing what is typically the most volatile month for Corn. Now we head into what is often Soybean’s volatile month. Bargain hunter and deal seekers were out in full force today pushing the September volume to its highest life of contract levels but the November volume was on par with average volume for its contract. Beans is at an important juncture. Recent beneficial weather could result in increased carryout and weigh down prices while at the same time lower prices could stimulate some bargain hunter buying lifting some demand. End users and commercials determined key buying levels for themselves well in advance. Program trading automatically and systematically build their inventory positions for them. If the market gets too far away from favorable prices they will simply pull orders and wait for the market to come back to their desires levels.
Corn did not break the July 22nd low that we spoke about early in the week with September closing very close to our 336 key support/resistance level. September Corn finished up 2.25 cents and December was up 3.50 cents. Soybean had a strong showing today. September rose 24.75 cents and November gained 23.25 cents. September Wheat was again pretty much flat dropping 1.25 cents.
