Technically Speaking

Ag Markets: Weekly Analysis

By Darin Newsom , DTN Senior Analyst

Corn: The December contract closed 1.50cts lower. The secondary (intermediate-term) trend remains sideways on the weekly chart. However, weekly stochastics did establish a bullish crossover well below the oversold level of 20% indicating the next move should be to an uptrend. The December contract is consolidating above support at its recent low of $4.32.

Soybeans: The November contract closed 8.75cts higher. The secondary (intermediate-term) trend on the weekly chart remains sideways to up. The more active January contract (by open interest) is trading between support at $12.87 1/2, the 50% retracement level of the previous uptrend from $11.69 to $14.06, and resistance near $13.16 1/2, the 38.2% retracement level of the sell-off from $14.06 through the recent low of $12.61 1/4. The 61.8% retracement level is down near $12.59 1/2. Weekly stochastics remain neutral.

Wheat: The Chicago December contract closed 15.00cts lower. While the minor (short-term) trend is down on the daily chart, the secondary (intermediate-term) trend remains up. Initial resistance remains near $7.28, a price that marks the 33% retracement level of the previous downtrend from $9.13 through the low of $6.35 1/2. Weekly stochastics are bullish and moving toward the overbought level of 80%.

Cotton: The December contract closed 4.03cts lower. The secondary (intermediate-term) trend remains down. The December contract fell below support at 79.49, a price that marks the 61.8% retracement level of the previous uptrend from 70.70 through the high of 93.72. The 67% retracement level is at 78.37. Weekly stochastics are below the oversold level of 20%.

Live Cattle: The December contract closed 0.95cts higher. Despite the higher close this past week, weekly stochastics indicate the secondary (intermediate-term) trend remains down. Initial support is pegged near $130.65, a price that marks the 33% retracement level of the previous uptrend. The 50% retracement level is down near $128.67.

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