Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.22 3/4, down 15 3/4 cents for the week. The NCI.X looks to have established a rare expanding triangle top on its weekly close chart. Recent highs have been $3.34, $3.37 1/2, and $3.38 1/2 mixed with lower lows of $3.26 3/4, $3.26 1/4, and this past week's $3.22 3/4. Meanwhile, weekly stochastics are growing more bearish after moving below the overbought level of 80%. Initial support is near $3.18 1/4, a price that marks the 38.2% retracement level of the previous uptrend from $2.85 1/4 through the high of $3.38 1/2.
Corn (Old-crop Futures): The May contract closed 16.50cts lower at $3.64 1/4. Using the market's weekly close chart, May corn looks to be in the process of establishing a secondary (intermediate-term) head-and-shoulders top. If so the right should could occur with a weekly close near $3.75. The contract's minor (short-term) trend remains down meaning selling interest could continue through the early part of this week.
Corn (New-crop Futures): The December 2017 contract closed 12.75cts lower at $3.86 1/2. The contract's posted a new 4-week low of $3.85 last week, challenging the previous low of $3.83 3/4. Weekly stochastics turned bearish again, indicating the market could continue to see pressure from both commercial and noncommercial traders. The contract's minor (short-term) trend remains down with daily stochastics nearing the oversold level of 20%. Next support is at $3.85, then $3.82 1/4.
Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $9.26 3/4, down 30 cents for the week. Despite the recent sharp sell-off, technically the secondary (intermediate-term) trend remains sideways with the last secondary signal by weekly stochastics a bullish crossover below the oversold level of 20% (week of October 10, 2016). However, next support for the NSI.X is the weekly close of $9.23 from the week of January 3.
Soybeans (Old-crop Futures): The May contract closed at $10.06 1/2, down 31 cents for the week. May soybeans quickly erased the previous week's bullish signals by falling to a new 4-week low of $10.03. This would indicate the contract has resumed its secondary (intermediate-term) downtrend that dates back to a bearish crossover by weekly stochastics the week of June 4, 2016. Next support is at $9.87 1/2, a price that marks the 67% retracement level of the previous rally from $9.37 1/4 through the high of $10.8 1/4. The 76.4% retracement level is down near $9.73.
Soybeans (New-crop Futures): The November 2017 contract closed at $9.99 3/4, down 22 1/4 cents for the week. The secondary (intermediate-term) trend remains down with the last signal by weekly stochastics a bearish crossover above the overbought level of 80% (week of November 28, 2016). Initial support remains at $9.81, the 33% retracement level of the previous uptrend from $8.57 through the high of $10.43. However, given the contract is in a 3-wave downtrend it could look to test the 50% retracement level of $9.50.
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