Corn: The December contract closed 0.50cts lower. The contract posted a new low of $4.15 1/2 this past week, indicating the secondary (intermediate-term) trend remains down. However, weekly stochastics are in single digits indicating the contract is sharply oversold. These same stochastics also established a bullish crossover Friday, implying that the trend could soon turn sideways to possibly up. The minor (short-term) trend did turn up on the daily chart.
Soybeans: The January contract closed 44.50cts higher. The secondary (intermediate-term) trend on the weekly chart turned up. The January contract rallied off a test of support near $12.48, a price that marks the 67% retracement level of the previous uptrend from $11.69 through the high of $14.06, to trade above the previous week's high and close higher for the week. This established a bullish key reversal. Also, weekly stochastics turned bullish again.
Wheat: The Chicago December contract closed 18.00cts lower. The secondary (intermediate-term) trend on the wheat chart is sideways to down. The December Chicago contract has fallen back to a test of its previous low at $6.35 1/2 (week of August 11). According the latest CFTC Commitment of Traders report, noncommercial traders have reestablished a net-short futures position.
Cotton: The December contract closed 0.30cts higher. While the secondary (intermediate-term) trend remains down, as indicated by the December contract posting a new low of 75.27 this past week, it is in position to post a spike reversal this coming week. After moving to a new low the contract rallied to post a higher weekly close. Follow-through buying could establish an uptrend.
Live Cattle: The December contract closed 0.32cts higher. 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 from $122.775 through the recent high of $134.575. The 50% retracement level is at $128.675.
To track my thoughts on the markets throughout the day, follow me on Twitter: www.twitter.com\DarinNewsom