Technically Speaking

Weekly Analysis: Grain Markets

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.51, down 6 cents for the week. The secondary (intermediate-term) trend is sideways-to-up with support at the recent low of $3.36 and resistance the 4-week high of $3.57. Weekly stochastics are bullish, indicating the market could move back into an uptrend with a target area between $3.67 1n3 $3.80.

Corn (Futures): The March contract closed 6.25cts lower at $3.75 1/4. Despite the lower weekly close, technical indicators show the secondary (intermediate-term) trend is sideways-to-up. Weekly stochastics are bullish above the oversold level of 20%.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $8.24, down 36 cents for the week. Technically the secondary (intermediate-term) trend remains up, though the NSI.X is in position to move to a new major low below $8.09. Weekly stochastics are bullish above the oversold level of 80%.

Soybeans (Futures): The January contract closed 35.25cts lower at $8.70 3/4. The futures contract posted a possible bearish reversal on its weekly chart despite stochastics remaining bearish. If the trend has turned down again its target is the 4-week low of $8.44 1/4.

SRW Wheat (Cash): The DTN SRW Wheat National Index (SR.X, national average cash price) closed at $4.43, up 6 cents for the week. The SR.X remains in a wide ranging secondary (intermediate-term) sideways trend. Initial support is at $4.20, then $4.11. Initial resistance is at the initial high of $4.54, then $4.77.

HRW Wheat (Cash): The DTN HRW Wheat National Index (HW.X, national average cash price) closed at $4.22, up 2 cents for the week. The secondary (intermediate-term) may have turned up as the HW.X posted a new 4-week high of $4.29. However, the marked did see a lack of follow-through buying late in the week.

HRS Wheat (Cash): The DTN HRS Wheat National Index (SW.X, national average cash price) closed at $4.87, down 14 cents for the week. Weekly stochastics established a bearish crossover above the overbought level of 80%, signaling the secondary (intermediate-term) trend has turned down. Initial support is pegged at $4.83, then $4.73.

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