Technically Speaking

Weekly Analysis: Grain Markets

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.56, up 1 cent for the week. The secondary (intermediate-term) trend remains sideways-to-up with resistance at $3.67. This price marks the 50% retracement level of the sell-off from $4.06 through the low of $3.28. The major (long-term) trend remains up.

Corn (Dec futures): The December contract closed 0.25ct higher at $3.89 1/4. The secondary (intermediate-term) trend remains sideways-to-up with initial resistance at the trendline mark of $3.92 1/4 this week, then the 4-week high of $3.95. Weekly stochastics are bullish above the oversold level of 20%.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $8.18, down 17 cents for the week. The market turned bearish again last week with the NSI.X in position to test its recent low of $8.09. However, the market tends to post its seasonal low (weekly close) with last week's low, trending up through next summer.

Soybeans (Futures): The November contract closed 15.00cts lower at $8.74 1/4. Despite moving to a new 4-week high of $9.92 1/4 last week, Nov soybeans were unable to generate follow-through buying interest leading to the lower close. Support is at the contract low of $8.53 1/4. Weekly stochastics remain neutral and well below the oversold level of 20%. Seasonally the market tends to post its low (weekly close) last Friday.

SRW Wheat (Cash): The DTN SRW Wheat National Index (SR.X, national average cash price) closed at $4.59, up 6 cents for the week. The secondary (intermediate-term) trend is up with initial resistance at $4.61. This price marks the 23.6% retracement level of the previous downtrend from $6.23 though the low $4.11. The 33% retracement level is up at $4.81.

HRW Wheat (Cash): The DTN HRW Wheat National Index (HW.X, national average cash price) closed at $4.45, up 1 cent for the week. The secondary (intermediate-term) trend is up with an initial target of $4.62. This price marks the 23.6% retracement level of the previous sell-off from $6.41 through the recent low of $4.06. The 33% retracement level is up at $4.85.

HRS Wheat (Cash): The DTN HRS Wheat National Index (SW.X, national average cash price) closed at $4.84, down 12 cents for the week. Despite the lower weekly close, the secondary (intermediate-term) trend remains up with weekly stochastics bullish. Initial resistance is pegged at $4.97, the 23.6% retracement level of the previous downtrend from $6.68 through the recent low of $4.44. The 33% retracement level is up at $5.19.

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