Technically Speaking

Corn (Futures): The March contract closed at $3.97, 8 1/4 cents higher on the monthly chart. The major (long-term) trend remains up with initial resistance pegged at $4.43 1/2. This price marks the 23.6% retracement level of the previous downtrend from $8.49 (high from August 2012) through the October 2014 low of $3.18 1/4. Monthly stochastics remain bullish.

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.64, up 15 cents for the month. The major (long-term) trend remains up with initial resistance pegged at 44.10, a price that marks the 23.6% retracement level of the previous downtrend from $8.26 (August 2012) through the low of $2.81 (October 2014). Monthly stochastics remain bullish. Also, national average basis strengthen by about 7 cents during December despite the rally in the futures market (see above), closing at 33 cents under.

Soybeans (Futures): The March contract closed at $10.23 1/2, 7 1/2 cents higher on the monthly chart. Monthly stochastics established a bullish crossover in December, confirming the major (long-term) uptrend established in October when the futures market posted a bullish key reversal. Support from the commercial side of the market could lead to a test of initial resistance at $11.98 3/4, a price that marks the 33% retracement level of the previous downtrend from $17.89 (September 2012) through the October 2014 low of $9.04.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $9.68, up cents for the month. Monthly stochastics posted a secondary (confirming) bullish crossover to the one established at the end of November 2013 (more than a year ago), indicating the major (long-term) trend has turned up. Initial resistance is pegged at $11.49, a price that marks the 33% retracement of the previous downtrend from the high of $17.48 (August 2012) through the low of $8.50 (October 2014). However, national average basis weakened in December, closing the month at 55 cents under the March futures contract.

SRW Wheat (Futures): The March Chicago contract closed at $5.89 3/4, 11 1/4 cents higher on the monthly chart. While the major (long-term) remains up, the futures market looks to have established a spike high with its rally to $6.77 late in December. This put the market in the technical no-man's land between resistance near $6.26 1/2 and $7.06 3/4, prices that mark the 33% and 50% retracement levels of the previous downtrend from $9.47 1/4 (July 2012) through the low of $4.66 1/4 (September 2014). The sell-off to close out the month has the contract testing support between $6.06 3/4 and $5.71 1/2. Beyond that support is pegged near $5.36 1/2.

Wheat (Cash): The DTN National SRW Wheat Index (SR.X, national average cash price) closed at $5.57, up 13 cents for the month. The major (long-term) trend remains up. However, the SR.X posted a spike rally above its initial price target near $5.88, a price that marks the 33% retracement level of the previous downtrend from $9.14 (July 2012) through the low of $4.25 (September 2014). From there the SR.X fell back to a test of support near $5.57, with next levels pegged near $5.24 and $4.91.

To track my thoughts on the markets throughout the day, follow me on Twitter:www.twitter.com\Darin Newsom

Commodity trading is very complicated and the risk of loss is substantial. The author does not engage in any commodity trading activity for his own account or for others. The information provided is general, and is NOT a substitute for your own independent business judgment or the advice of a registered Commodity Trading Adviser.