Technically Speaking

Weekly Analysis: Grain Markets

Source: DTN ProphetX

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $2.95 1/2, down 1 1/4 cents for the week. Weekly stochastics continue to indicate the secondary (intermediate-term) trend is up. Initial resistance is at the new 4-week high (last week's high) of $2.99 3/4. Next resistance is pegged at $3.03, a price that marks the 23.6% retracement level of the previous downtrend from $4.00 1/2 through the low of $2.73.

Corn (Futures): The December contract closed 0.50ct lower at $3.36 1/2. Weekly stochastics continue to indicate a secondary (intermediate-term) uptrend. However, the contract posted a doji (candlestick) pattern on its weekly chart reflecting market indecision. Resistance remains at $3.46 1/2, a price that marks the 23.6% retracement level of the previous downtrend from the high of $4.49 through the contract low of $3.14 3/4. Support is at the contract low.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $8.99 1/4, down 22 cents for the week. The NSI.X posted a bearish outside range last week before closing below support at $9.07 1/4. This price marks the 67% retracement level of the previous uptrend from $8.05 through the high of $11.12. The 76.4% retracement level is down at $8.77 1/2. However, weekly stochastics are in single digits indicating a sharply oversold situation.

Soybeans (Futures): The November contract closed at $9.55, down 21 1/2 cents for the week. The secondary (intermediate-term) trend remains sideways with support at the recent low of $9.37 and resistance at the 4-week high (last week's high) of $9.94. 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 $4.04 2/4, up 1 1/2 cent for the week. Weekly stochastics remain bullish, indicating the market could be trying to build a secondary (intermediate-term) uptrend. A move to a new 4-week high, above last week's high of $4.11 3/4, would establish the uptrend.

HRW Wheat (Futures): The December Kansas City contract closed at $4.21 1/2, up 4 1/4 cents for the week. Weekly stochastics remain bullish, indicating the market could be trying to build a secondary (intermediate-term) uptrend. A move to a new 4-week high, above last week's high of $4.25 3/4, would confirm the move to an uptrend.

HRS Wheat (Futures): The December Minneapolis contract closed at $5.03 3/4, up 11 cents for the week. Weekly stochastics indicate the secondary (intermediate-term) trend is up following an initial bullish crossover, below 20%, the week of August 8 and a confirming bullish crossover last week. A move to a new 4-week high, above last week's high of $5.09 1/2, would confirm the move to an uptrend.

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

Comments

To comment, please Log In or Join our Community .