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 1/4, down 1/4 cent for the week. Weekly stochastics continue to indicate the secondary (intermediate-term) trend is up. Initial resistance is 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 0.25ct higher at $3.36 3/4. Weekly stochastics continue to indicate a secondary (intermediate-term) uptrend. The contract posted a hammer (candlestick) pattern on its weekly chart, similar to the one from the week of August 29. That one led to a rally of about 15 cents before stalling. A similar reaction would finally take Dec corn beyond resistance near $3.46 1/2, a price that marks the 23.6% retracement level of the previous downtrend from $4.49 through the low of $3.14 3/4.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $8.91, down 8 1/2 cents for the week. After leaving a bearish gap to start last week, the NSI.X posted a spike low of $8.84 before closing near last week's high of $8.92 3/4. This action leaves the door open to a possible bullish island reversal if the NSI.X leaves a bullish gap this coming week. To do that cash soybeans will need to rally at least 3 cents Monday, made more difficult by continued weakness in national average basis. Weekly stochastics are in single digits, in position to establish a bullish crossover.

Soybeans (Futures): The November contract closed at $9.54, down 1 cent for the week. Nov soybeans posted a doji (candlestick pattern) on its weekly chart, indicating market indecision. With weekly stochastics below the oversold level of 20%, and after having rallied off a test of support near $9.29 1/4 (last week's low was $9.34), Nov beans look to be in position to establish a secondary (intermediate-term) uptrend.

SRW Wheat (Futures): The December Chicago contract closed at $4.02, down 2 3/4 cents for the week. The secondary (intermediate-term) trend is sideways with resistance at the 4-week high of $4.11 3/4 and support the contract low of $3.86 3/4. Weekly stochastics remain bullish indicating the next change should be to an uptrend.

HRW Wheat (Futures): The December Kansas City contract closed at $4.15 1/2, down 6 cents for the week. The secondary (intermediate-term) trend is sideways with resistance at the 4-week high of $4.25 3/4 and support the contract low of $3.95. Weekly stochastics remain bullish indicating the next change should be to an uptrend.

HRS Wheat (Futures): The December Minneapolis contract closed at $5.14 1/2, up 10 3/4 cents for the week. The secondary (intermediate-term) trend remains up after Dec Minneapolis posted a new 4-week high of $5.21 1/4. Next resistance is at $5.28 3/4, the high from the week of August 15. Weekly stochastics continue to grow more bullish.

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