Technically Speaking

Weekly Analysis: Grain Markets

By Darin Newsom , DTN Senior Analyst
Source: DTN ProphetX

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.34, down 3 cents for the week. The secondary (intermediate-term) trend is sideways-to-down Next support is between $3.29 and $3.23. Weekly stochastics remain neutral-to-bearish above the oversold level of 20%.

Corn (Old-crop futures): The March contract closed 5.75cts lower at $3.58 3/4. Both the secondary (intermediate-term) and minor (short-term) trends are down. The major (long-term) trend remains sideways with support near $3.50 1/4. Daily and weekly stochastics are below the oversold level of 20% indicating a short-term round of buying interest could soon emerge.

Corn (New-crop futures): The December 2016 contract closed 6.00cts lower at $3.83. The secondary (intermediate-term) trend remains sideways-to-down while the minor (short-term) trend is down. This would suggest Dec 2016 corn could test its contract low of $3.77 before uncovering buying interest. Both daily and weekly stochastics are below the oversold level of 20%.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $8.19, down 6 cents for the week. The secondary (intermediate-term) trend is sideways with initial support at the major (long-term) double-bottom low near $8.09. Weekly stochastics are neutral-to-bearish above the oversold level of 20%.

Soybeans (Old-crop futures): The March contract closed 8.75cts lower at $8.64 1/4. The secondary (intermediate-term) trend is sideways between the recent high of $9.11 1/2 and contract low of $8.47. March beans are holding near support at $8.62 1/4. Weekly stochastic are neutral-to-bearish above the oversold level of 20% indicating a test of the contract low is possible.

Soybeans (New-crop futures): The November 2016 contract closed 7.25cts lower at $8.82 3/4. The secondary (intermediate-term) trend is sideways between the recent high of $9.26 1/2 and contract low of $8.50. Next support is pegged near $8.75 1/2. Weekly stochastic remain neutral-to-bearish.

SRW Wheat (Cash): The DTN SRW Wheat National Index (SR.X, national average cash price) closed at $4.25, down 3 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 high of $4.54, then $4.77.

SRW Wheat (New-crop futures): The July 2016 Chicago contract closed 0.50ct lower at $4.83 1/4. The secondary (intermediate-term) trend is sideways with support at the contract low of $4.80 1/2. Last week's low was $4.80 3/4. Weekly stochastics are below the oversold level of 20% indicating the market could see a short-term round of buying interest soon.

HRW Wheat (Cash): The DTN HRW Wheat National Index (HW.X, national average cash price) closed at $4.08, up 9 cents for the week. The secondary (intermediate-term) remains sideways with the HW.X holding above the double-bottom at $3.99. Initial resistance is at the 4-week high of $4.32.

HRW Wheat (New-crop futures): The July 2016 Kansas City contract closed 0.75ct higher at $4.88 3/4. Technically the secondary (intermediate-term) trend remains down after July KC posted a new contract low of $4.84 1/4. However, the higher weekly close combined with stochastics below the oversold level of 20% could turn the trend sideways. Initial resistance is at the 4-week high of $5.16 1/4.

HRS Wheat (Cash): The DTN HRS Wheat National Index (SW.X, national average cash price) closed at $4.67, up 11 cents for the week. Despite the higher weekly close the secondary (intermediate-term) trend remains down. Next support is at the major (long-term) low of $4.44 from September 2015. Weekly stochastics are bearish.

HRS Wheat (New-crop futures): The September 2016 Minneapolis contract closed 2.50cts lower at $5.24 1/4. The secondary (intermediate-term) trend is down with Sept Minneapolis posting a new contract low of $5.23 1/2 last week. Stochastics are in single-digits indicating a sharply oversold situation.

To track my thoughts on the markets throughout the day, follow me on Twitter: www.twitter.com\DarinNewsom

Comments

To comment, please Log In or Join our Community .