Technically Speaking

Weekly Analysis: Grain Markets

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.44, up 7 cents for the week. Cash corn remains in a sideways trend as it consolidates near support at $3.44. This price marks the 50% retracement level of the rally from $2.81 through the high of $4.06. Weekly stochastics are neutral with the last intermediate-term signal a bullish crossover below the oversold level of 20% the week of June 1, 2015.

Corn (Dec futures): The December contract closed 5.00cts higher at $3.63 1/4. The secondary (intermediate-term) trend is sideways with support at the recent low of $3.560. However, weekly stochastics are neutral-to-bearish indicating continued pressure could be seen. The major (long-term) trend is also sideways with support near $3.50 1/4.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $8.13, up 3 cents for the week. The secondary (intermediate-term) trend is sideways with support at $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 2.25cts higher at $8.57 1/2. The secondary (intermediate-term) trend remains down after the recent move to a new low of $8.51 1/4. Weekly stochastics remain bearish below the oversold level of 20% indicating additional pressure could continue to build.

SRW Wheat (Cash): The DTN SRW Wheat National Index (SR.X, national average cash price) closed at $4.43, down 8 cents for the week. While technical indicators continue to show the secondary (intermediate-term) trend is up, a minor (short-term) downtrend resulted in a 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 $4.05, down 7 cents for the week. The secondary (intermediate-term) turned down after the move below the previous low of $4.06. Weekly stochastics are neutral-to-bearish indicating pressure could continue to be seen.

HRS Wheat (Cash): The DTN HRS Wheat National Index (SW.X, national average cash price) closed at $4.93, up 8 cents for the week. The secondary (intermediate-term) trend remains up with resistance near $5.00. However, weekly stochastics are approaching the overbought level of 80%.

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