Technically Speaking

Weekly Analysis: Grain Markets

By Darin Newsom , DTN Senior Analyst

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.43 1/4, up 3 cents for the week. The secondary (intermediate-term) trend remains sideways with support near $3.29 and initial resistance near $3.49 1/2. Weekly stochastics are bullish above the oversold level of 20% indicating the NCI.X could see continued strength.

Corn (Old-crop futures): The May contract closed 3.00cts higher at $3.70. The double-bottom between the previous low of $3.54 1/4 (from the week of January 4) and the recent low of $3.54 1/2 remains in place. The secondary (intermediate-term) trend is sideways, with weekly stochastics continuing to grow more bullish. Initial resistance is at the 4-week high of $3.72, then $3.77 1/2. The latter marks the 28.6% retracement level of the previous downtrend from $4.53 1/4 through the low of $3.54 1/4.

Corn (New-crop futures): The December 2016 contract closed at $3.87 1/4, up 1 3/4 cents for the week. The secondary (intermediate-term) trend remains sideways with support at the contract low of $3.73 1/4. Resistance is at the 4-week high of $3.90.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $8.55 1/4, up 11 1/4 cents for the week. The secondary (intermediate-term) trend remains up. Next resistance is at the spike high of $8.60 1/2 from the week of November 30, 2015. Beyond that is the top of an old price gap at $8.87 1/2. However, weekly stochastics are approaching the overbought level of 80%.

Soybeans (Old-crop futures): The May contract closed at $9.10 1/2, up 13 cents for the week. The secondary (intermediate-term) trend remains up with next resistance the previous high of $9.17 1/2 from the week of December 6, 2015. Weekly stochastics continue to grow more bullish.

Soybeans (New-crop futures): The November 2016 contract closed at $9.22 3/4, up 13 cents for the week. The secondary (intermediate-term) trend remains up. With weekly stochastics growing more bullish the initial target continues to be $9.28.

SRW Wheat (Cash): The DTN SRW Wheat National Index (SR.X, national average cash price) closed at $4.21, up 1 cent for the week. The secondary (intermediate-term) trend remains sideways. Secondary support remains at the low of $4.02 1/4 while initial resistance is at the 4-week high of $4.34.

SRW Wheat (New-crop futures): The July 2016 Chicago contract closed at $4.70 3/4, up 1/2 cent for the week. The secondary (intermediate-term) trend turned sideways. Support is at the contract of $4.49 1/2 while resistance is at the 4-week high of $4.86 1/2.

HRW Wheat (Cash): The DTN HRW Wheat National Index (HW.X, national average cash price) closed at $4.04 3/4, up 1 1/4 cents for the week. The secondary (intermediate-term) trend remains up. Initial resistance is at the 4-week high of $4.24 1/4 with support at the low of $3.84 1/4.

HRW Wheat (New-crop futures): The July 2016 Kansas City contract closed at $4.82 3/4, up 2 3/4 cents for the week. Despite the recent consolidation the secondary (intermediate-term) trend is up. Initial support is at the recent low of $4.76 1/4 while resistance is at the double-top high near $5.00.

HRS Wheat (Cash): The DTN HRS Wheat National Index (SW.X, national average cash price) closed at $4.63, up 4 cents for the week. The secondary (intermediate-term) trend looks remains sideways with support at the recent low of $4.48. Resistance is at the 4-week high of $4.76 1/2.

HRS Wheat (New-crop futures): The September 2016 Minneapolis contract closed at $5.32 1/2, up 5 cents for the week. The secondary (intermediate-term) trend remains up with resistance at $5.38 3/4. This price marks the 23.6% retracement level of the previous downtrend from $6.55 through the contract low of $5.02 3/4. The 33% retracement level is up near $5.53 1/2.

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

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