Grains sell off heading into the weekend. r.
Chuck Shelby, Risk Management Commodities, says row crops saw profit taking from the rally on Thursday and hit chart resistance.
However, with a high-pressure ridge showing up in the extended forecast that could have traders back buying Sunday night if that confirms.
In addition, the market is nearing the end of the month, the end of the quarter and is the delivery period which could keep the volatility high.
The trade will also be gearing up for the USDA Acreage and Quarterly Stocks reports at the end of the month.
Wheat continued to see harvest pressure making new lows for the move. He says the wheat market is likely to continue to see hedge selling until the harvest passes the halfway mark. At that point he thinks it could go back to pricing in the lower crop in the Black Sea region and he is optimistic about the U.S. picking up some export business.
A recovery in the U.S. dollar index was also negative for the grains.
