It is our bias that as soon as nearby Minneapolis wheat starts to trade and some of the trapped shorts get out of the market, then a top will likely be scored in Minneapolis, Chicago and Kansas City wheat. All wheat markets should continue to watch the Minneapolis wheat futures market. One thing is predictable: When wheat prices are finally allowed to trade and all buyers are satisfied, a historic high will be established that will not soon be seen again.

The exchanges have doubled trading margins and extended daily trading limits. Keep in mind that in early 2004, we had $10 soybean prices-and it was unanimous among the trading community that soy prices were headed to $13 or $15. During this time, the CBOT came out and raised margins on soy, and prices traded down to $6 in the months ahead. One definition of a bull market is when there are not any sellers left. We seem to have met that criterion. Also there is very little milling quality wheat to buy. The demand is there, and buyers are just about willing to buy at any price.

The soybean market is poised to move higher following an overnight bounce from Monday's set back, but a choppy tone may be the order of the day as traders keep an eye on Minneapolis wheat futures and weather in South American soybean areas. Soybean bulls were impressed Monday by the market's ability to hold off strong selling pressure in the face of a meltdown in nearby Chicago and Kansas City wheat futures. Technically, soybeans look a little tired with the last three trading days bringing us lower highs each day. However, we continue to think it is a good idea to play the soybean market and the corn market from the long side. As long as March soybeans stay above the island low of $1301 on February 7th, it technically looks good. Also in corn, you have a double bottom at $491. Look to buy March Corn in the $495 to $500 range and look for this double bottom to hold.

There is not much fresh news out to influence corn, and therefore it will follow the other grains and outside markets. Although fundamental news is lacking, corn could have a hard time breaking. Thus, we think owning corn at lower prices is a good trade idea.