Technically Speaking

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.44, down $0.14 for the week. The secondary (intermediate-term) trend remains down with next support at $3.31. This price marks the 50% retracement level of the previous uptrend from $2.81 through the high of $3.80. National average basis strengthened last week with the NCI.X calculated at 26 cents under the close of the March futures contract.

Corn (Old-crop): The March contract closed 16.75cts lower at $3.70. The secondary (intermediate-term) trend remains down with next support near $3.59 1/4. This price marks the 67%% retracement level of the previous uptrend from $3.30 1/2 through the high of $4.17. Friday's CFTC Commitments of Traders report showed noncommercial interests reducing their net-long position by 14,023 contracts, including a reduction of long futures by 21,911 contracts.

Corn (New-crop): The December contract closed 16.50cts lower at $4.00 3/4. The secondary (intermediate-term) trend remains down with next support near $3.91 1/2. This price marks the 67% retracement level of the previous uptrend from $3.64 1/4 through the high of $4.40. Weekly stochastics are bearish indicating the contract should continue to extend its downtrend.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $9.13, down 9 cents for the week. Technical indicators show the NSI.X remains in a sideways trend with support between $9.26 and $9.01. These prices mark the 50% and 67% retracement levels of the previous rally from $8.50 through the $10.02 high the week of December 8. Weekly stochastics are neutral to bearish. National average basis strengthened 2 cents last week with the NSI.X calculated Friday at 48 cents under the close of the March futures contract.

Soybeans (old-crop): The March contract closed 11.75cts lower at $9.61 last week. March soybeans moved below support near $9.69 1/2, setting up a possible test of the previous low at $9.20 3/4. Pressure continues to come from noncommercial traders with Friday's Commitments of Traders report showing this group adding 25,743 contracts to their net-short futures holdings. The bulk of this was a reduction of 16,691 contracts in their long futures position.

Soybeans (new-crop): The November contract closed 14.00cts lower at $9.45 3/4. Weekly stochastics remain neutral to bearish, setting up a test of support at the contract low of $9.27 1/2.

Wheat (Cash): The DTN National SRW Wheat Index (SR.X, national average cash price) closed at $4.73, down 27 cents for the week. The secondary (intermediate-term) trend remains down with next support at the previous low of $4.25. Weekly stochastics remain bearish, indicating the market should continue to extend its downtrend. The SR.X posted a bearish extension gap between $5.01 (previous week's low) and $4.91 (last week's high). The $4.91 level also marked the 67% retracement level of the previous secondary uptrend from $4.25 through the high of $6.23. Despite the sell-off in the futures market last week, national average basis weakened slightly.

SRW Wheat (old-crop): The March Chicago contract closed 27.25cts lower at $5.02 3/4 last week. Weekly stochastics remain neutral to bearish indicating March Chicago wheat could extend its sell-off to a test of its previous low of $4.80. Pressure continues to come from noncommercial selling, with Friday's CFTC Commitments of Traders report showing this group moving to a net-short futures position of 1,446 contracts by increasing their short futures holding by 2,700 contracts.

SRW Wheat (new-crop): The July Chicago contract closed 25.00cts lower at $5.11 1/2 last week. The secondary (intermediate-term) trend remains down with the July contract moving toward a test of its previous low of $4.96 1/2. Weekly stochastics are bearish but nearing the oversold level of 20%, setting up a potential bullish crossover in coming weeks.

Last Friday's CFTC Commitments of Traders were report showed positions as of Tuesday, January 27.

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