Technically Speaking

Monthly Analysis: Grain Markets

Source: DTN ProphetX

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.55, up 2 cents for the month. The NCI.X remains in a major (long-term) 5-wave uptrend pattern, holding support between $3.44 and $3.23. These prices mark the 50% and 67% retracement levels of the rally from $2.81 (October 2014) through $4.06 (July 2015). October saw the NCI.X post a high of $3.64, slightly above the September peak of $3.63. Monthly stochastics remain bullish.

Corn (Futures): The December contract closed at $3.82 1/4, down 5.5 cents on the monthly chart. Despite the lower monthly close, technical indicators continue to show the major (long-term) trend is up. However Dec corn continues to hold below the August high of $4.02, indicating a consolidation phase. Initial resistance remains pegged at $4.43 1/2, a price that marks the 23.6% retracement level of the previous downtrend from $8.49 (August 2012) through the low of $3.18 1/4 (October 2014). Monthly stochastics are still bullish.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $8.31, down 7 cents for the month. Technical patterns indicate the major (long-term) trend remains down, though the NSI.X held above September's low of $8.09. Monthly stochastics are well below the oversold level of 20% indicating the NSI.X could continue to consolidate before establishing a bullish crossover.

Soybeans (Futures): The January contract closed at $8.84 3/4, down 6.25 cents on the monthly chart. Weekly stochastics remains bullish, though below the oversold level of 20%, still confirming September's action was a spike reversal indicating a move to a major (long-term) uptrend. However, the market continues to struggle finding buying interest from noncommercial traders.

Wheat (Cash): The DTN National SRW Wheat Index (SR.X, national average cash price) closed at $4.72, up 19 cents for the month. The major (long-term) trend is up with the SR.X above the September high of $4.53 and closing at the August high of $4.72. Monthly stochastics are bullish, above the oversold level of 20%.

SRW Wheat (Futures): The December Chicago contract closed at $5.22, up 9.25 cents on the monthly chart. The major (long-term) trend looks to be up given the move above the August high of $5.30 in October (the December contract posted a high of $5.31). Monthly stochastics are bullish above the oversold level of 20%.

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