Grains all closed higher on Tuesday on short covering across the complex.
Don Roose, U.S. Commodities, says it is end of month and quarter which prompted some short profit taking by the funds, who are record short in the grains.
Corn and wheat scored key reversals bouncing off of new contract lows as the market may have traded the most bearish news.
But is it possible corn and wheat are trying to bottom?
Roose says seasonally wheat tries to forge a low this time of year and for corn it is not uncommon in years of bumper crops for the market to put in an early harvest low.
Despite that, Roose says $4 will be tough resistance for corn to break through to extend the rally.
Soybeans were up for a third day adding weather premium with hot dry weather in much of the Corn Belt and getting to price levels where end users found value.
So, how much higher can soybean prices go?
Roose says $10 will be strong psychological chart resistance for November soybean prices.
