Technically Speaking

Weekly Analysis: Grain Markets

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.57, up 18 cents for the week. The market returned to its secondary (intermediate-term) uptrend with a move to a new 4-week high last week. Next resistance is at $3.67, then $3.80.

Corn (Futures): The March contract closed 14.25cts higher at $3.81 1/2. The secondary (intermediate-term) trend remains sideways. However, the contract is poised to establish a new 4-week high above $3.84 1/4. If so it would signal a move to a secondary uptrend.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $8.61, up 33 cents for the week. The secondary (intermediate-term) trend turned up after the NSI.X left a bullish breakaway gap on its weekly chart. It also moved above, and closed above, the previous peak of $8.57. Weekly stochastics (momentum study) continue to grow more bullish.

Soybeans (Futures): The January contract closed 33.00cts higher at $9.06. The futures contract strengthened its recently established secondary (intermediate-term) uptrend with a move to a new 4-week high of $9.07. Initial resistance is pegged near $9.30 1/2, a price that marks the 23.6% retracement level of the previous downtrend from $12.09 1/4 through the recent low of $8.44 1/4.

SRW Wheat (Cash): The DTN SRW Wheat National Index (SR.X, national average cash price) closed at $4.38, up 13 cents for the week. The SR.X rallied off its test of support at $4.27, a price that marks the 76.4% retracement level of the previous rally from $4.11 through the high of $4.77.

HRW Wheat (Cash): The DTN HRW Wheat National Index (HW.X, national average cash price) closed at $4.20, up 20 cents for the week. The secondary (intermediate-term) looks to be sideways. The HW.X is in position to move to a new 4-week high above $4.20 and possibly post a bullish breakaway gap.

HRS Wheat (Cash): The DTN HRS Wheat National Index (SW.X, national average cash price) closed at $5.01, up 8.00 cents for the week. The secondary (intermediate-term) trend remains up with next resistance at $5.19. However, weekly stochastics have moved above the overbought level of 80%.

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