Technically Speaking

Monthly Analysis: Grain Markets

Source: DTN ProphetX

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.69 1/4, up 12 3/4 cents for the month. The NSI.X broke out of its major (long-term) sideways trend in May and now looks to be trending up with resistance at the high from October 2015 near $3.64 1/4. The next upside target is $4.05 3/4, a test of both the July 2015 high and $4.10, the 23.6% retracement level of the previous major downtrend from near $8.26 1/4 (August 2012) through the October 2014 low near $2.81 1/4.

Corn (Futures): The July contract closed at $4.04 3/4, up 13 cents on the monthly chart. The major (long-term) trend remains up, dating back to October 2014. Initial resistance remains at $4.43 1/2, a price that marks the 23.6% retracement level of the previous major downtrend from $8.49 (August 2012) through the October 2014 low of $3.18 1/4.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $10.10 3/4, up 54 cents for the month. The major (long-term) uptrend strengthened during May with the NSI.X testing resistance near $10.27 1/2, a price that marks the 23.6% retracement level of the previous major downtrend from $17.47 3/4 (August 2012) through the low near $8.05 (March 2016).

Soybeans (Futures): The July contract closed at $10.78 1/2, up 48 3/4 cents on the monthly chart. The major (long-term) trend is up with the July futures contract above initial resistance near $10.67 1/4. This price marks the 23.6% retracement level of the previous downtrend from $17.89 (September 2012) through the low of $8.44 1/4 (November 2015). Bullish monthly stochastics indicate a test of the 33% retracement level of $11.58 3/4 is possible.

Wheat (Cash): The DTN National SRW Wheat Index (SR.X, national average cash price) closed at $4.34 3/4, down 14 1/2 cents for the month. The major (long-term) trend is sideways with support at the February 2016 low near $4.02 1/4.

SRW Wheat (Futures): The July Chicago contract closed at $4.64 1/2, down 24 cents on the monthly chart. The major (long-term) trend turned sideways again with support at the March 2016 low of $4.42 1/4.

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