Technically Speaking

Weekly Analysis: Grain Markets

Source: DTN ProphetX

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $2.96 3/4, down 1 1/4 cents for the week. Weekly stochastics continue to indicate the secondary (intermediate-term) trend is up, though the NCI.X needs to move above the previous 4-week high of $3.02 3/4 to confirm.

Corn (Futures): The December contract closed 4.00cts lower at $3.37. Despite the lower close, weekly stochastics continue to indicate a secondary (intermediate-term) uptrend. Like the NCI.X, Dec corn needs a move above its 4-week high of $3.44 to confirm the trend. Initial resistance at $3.46 1/2, a price that marks the 23.6% retracement level of the previous downtrend from $4.49 through the contract low of $3.14 3/4. The 33% retracement level is up at $3.59 1/2.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $9.21 1/4, down 16 1/4 cents for the week. Once again, the NSI.X looks to have possibly established a bullish technical signal, this time a bullish spike reversal. After testing support at $9.07 1/4 (last week's low was $8.99 1/2) the NSI.X rallied into Friday's close. Still, the fact it posted a new 4-week low leaves the market vulnerable to renewed selling interest.

Soybeans (Futures): The November contract closed at $9.66, down 14 1/4 cents for the week. The secondary (intermediate-term) trend remains sideways with support at the 4-week low of $9.37. Weekly stochastics remain below the oversold level of 20%, in position to establish a bullish crossover that would be an early signal of a change in trend.

SRW Wheat (Futures): The December Chicago contract closed at $4.03 1/4, down 1/4 cent for the week. Weekly stochastics remain bullish, indicating the market could be trying to build momentum. However, the Dec contract remains a long way from establishing an uptrend with the 4-week high is up at $4.44 1/2.

HRW Wheat (Futures): The December Kansas City contract closed at $4.17 1/4, down 1 1/4 cents for the week. Weekly stochastics remain bullish, indicating the market could be trying to build momentum. However, the Dec contract remains a long way from establishing an uptrend with the 4-week high is up at $4.46 3/4.

HRS Wheat (Futures): The December Minneapolis contract closed at $4.92 3/4, down 1 1/4 cents for the week. The secondary (intermediate-term) trend remains sideways. Support is at the 4-week low of $4.30 with resistance at the 4-week high of $5.28. Weekly stochastics are below the oversold level of 20%, in position for a bullish crossover.

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