Technically Speaking

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.33, down 12 cents for the month. The major (long-term) trend remains up while the secondary (intermediate-term) trend is sideways to down. May saw the NCI.X test support at $3.31, a price that marks the 50% retracement level of the rally from $2.81 (October 2014 low) to $3.80 (December 2014 high). Next support is at the 67% retracement level of $3.14.

Corn (Futures): The July contract closed at $3.51 1/2, down 14.75 cents on the monthly chart. Corn continues to indicate it is Wave 2 of a 5-Wave (Elliott Wave Theory) major (long-term) uptrend. For this to continue to be the case the more active contract (based on open interest) needs to hold above the October 2014 low of $3.18 1/4. This month saw the December 2014 contract post a bullish key reversal indicating the previous major downtrend had come to an end.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $9.01, down 35 cents for the month. The major (long-term) trend remains sideways, with support at the October 2014 low of $8.50. Resistance is at the November high of $10.08. Monthly stochastics are neutral-to-bearish below 20%, indicating the market remains in an oversold situation. Support continues to come from commercial buying, as indicated the strengthening inverse in the old-crop July to August futures spread.

Soybeans (Futures): The July contract closed at $9.34, down 42 cents on the monthly chart. Similar to corn futures, technical indications are that soybean futures are in Wave 2 of a 5-Wave (Elliott Wave Theory) major (long-term) uptrend. However, June will see the November contract take over the role of most active (based on open interest) and begin to register on the continuous monthly chart. It could do so priced below the October low of $9.04, like corn the month soybean futures posted a bullish key reversal indicating an end to the previous major downtrend. If so the market would be vulnerable to another sell-off despite monthly stochastics, already in single digits, indicating soybean futures are sharply oversold.

Wheat (Cash): The DTN National SRW Wheat Index (SR.X, national average cash price) closed at $4.52 up 10 cents for the month. The major (long-term) trend remains sideways with support at $4.25 (September 2014 low) and resistance at $6.23 (December 2014 high). Monthly stochastics are back below the oversold level of 20% indicating the next move could be up.

SRW Wheat (Futures): The July Chicago contract closed at $4.77 up 3 cents on the monthly chart. The major (long-term) trend looks to be sideways. Support is at the April low of $4.64 while resistance is at the April high of $5.44 1/4. Monthly stochastics remain below 20% indicating the market is oversold.

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