Technically Speaking

Weekly Analysis: Grain Markets

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.39, down 4 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 (Futures): The March contract closed 2.50cts lower at $3.67 1/4. The secondary (intermediate-term) trend is sideways with support at the recent low of $3.64 1/4. 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 $8.27, up 15 cents for the week. The NSI.X remain in a secondary (intermediate-term) sideways trend, though threatening an upturn if it can move above its 4-week high of $8.34. Weekly stochastics established another bullish crossover below the oversold level of 20% indicating bullish momentum could continue to grow stronger.

Soybeans (Futures): The January contract closed 15.50cts higher at $8.73. The futures market looks to have established a secondary (intermediate-term) uptrend after the Jan contract posted a bullish reversal on its weekly chart last week. If so initial resistance is near $9.30 1/2, the 23.6% retracement level of the previous downtrend from $12.09 1/4 through last week's low of $8.44 1/4.

SRW Wheat (Cash): The DTN SRW Wheat National Index (SR.X, national average cash price) closed at $4.24, down 19 cents for the week. While technical indicators continue to show the secondary (intermediate-term) trend is sideways, a minor (short-term) downtrend remains in place. This could lead to a test of the previous low of $4.11.

HRW Wheat (Cash): The DTN HRW Wheat National Index (HW.X, national average cash price) closed at $3.99, down 6 cents for the week. The secondary (intermediate-term) remains down after the move to a new low of $3.99. Weekly stochastics are 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, unchanged 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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