Technically Speaking

Weekly Analysis: Grain Markets

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.36, down 13 cents for the week. The move to a new 4-week low turned the secondary (intermediate-term) trend sideways-to-down. Support is now pegged between $3.29 and $3.23, prices that mark the 61.8% and 67% retracement levels of the previous rally from $2.81 through the high of $4.06.

Corn (Dec futures): The December contract closed 14.75cts lower at $3.58 1/4. A move to a new low of $3.56 turned the secondary (intermediate-term) trend down. Weekly stochastics are neutral-to-bearish, above the oversold level of 20%. The major (long-term) trend remains sideways with support near $3.50 1/4, a price that marks the 76.4% retracement level of the previous rally from $3.18 1/4 (October 2014) through the high of $4.54 1/4 (July 2015).

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $8.10, down 9 cents for the week. The secondary (intermediate-term) trend is sideways with support at the low of $8.09. With weekly stochastics neutral-to-bearish below the oversold level of 20%, the NSI.X could soon establish a bullish crossover indicating increased bullish momentum.

Soybeans (Futures): The January contract closed 12.00cts lower at $8.55 1/4. The secondary (intermediate-term) trend turned down again as the contract moved to a new low $8.50. However, weekly stochastics are well below the oversold level of 20% indicating a bullish change in momentum could soon be seen. Some of this could come from noncommercial short-covering as this group reportedly moved to a net-short futures position (as of Tuesday, November 10).

SRW Wheat (Cash): The DTN SRW Wheat National Index (SR.X, national average cash price) closed at $4.51, down 23 cents for the week. While technical indicators continue to show the secondary (intermediate-term) trend is up, a minor (short-term) downtrend resulted in an abrupt test of support between $4.51 and $4.41. These prices mark the 33% and 50% retracement levels of the previous rally from $4.11 through the recent high of $4.77.

HRW Wheat (Cash): The DTN HRW Wheat National Index (HW.X, national average cash price) closed at $4.12, down 24 cents for the week. The secondary (intermediate-term) remains sideways with support at the low of $4.06. Weekly stochastics turned neutral-to-bearish above the oversold level of 20%.

HRS Wheat (Cash): The DTN HRS Wheat National Index (SW.X, national average cash price) closed at $4.84, down 11 cents for the week. Despite last week's sell-off the secondary (intermediate-term) trend remains up. The minor (short-term) sideways trend is sideways with initial support at $4.82 and resistance near $5.00.

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