Technically Speaking

Weekly Analysis: Grain Markets

Source: DTN ProphetX

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.11 1/2, up 14 cents for the week. The secondary (intermediate-term) uptrend continues to strengthen. Initial resistance on the weekly close chart is $3.12 1/2, a price that marks the 23.6% retracement level of the previous downtrend from $4.00 1/2 through the low of $2.85 1/4. The 33% retracement level is up near $3.23 1/2.

Corn (Futures): The December contract closed 14.50cts higher at $3.54 1/4. The market's secondary (intermediate-term) uptrend continues to strengthen. Dec corn posted a new 4-week high of $3.58 3/4, with next resistance pegged at $3.66. This price marks the 38.2% 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 $8.94, 3 1/4 cents for the week. The weekly close chart for the NSI.X continues to show a sideways trend, with the NSI.X holding between support levels at $9.09 1/4 and $8.79 3/4. These prices mark the 67% and 76.5% retracement levels of the previous uptrend from $8.08 through the high of $11.12. Weekly stochastics established a bullish crossover below the oversold level of 20%, indicating the trend could now turn up.

Soybeans (Futures): The November contract closed at $9.62 1/2, up 5 3/4 cents for the week. The higher weekly close led to a bullish crossover by stochastics, below the oversold level of 20%. This would indicate the recent consolidation could continue one more week before Nov beans establish a secondary (intermediiate0term) uptrend.

SRW Wheat (Futures): The December Chicago contract closed at $4.21, up 26 1/4 cents for the week. The secondary (intermediate-term) trend is now up as the contract broke out of its sideways trend, posting a new 4-week high of $4.28 1/4. Initial resistance is at $4.46, a price that marks the 23.6% retracement level of the previous downtrend from $6.38 through the low of $3.86 3/4. The 33% retracement level is up near $4.70 1/2.

HRW Wheat (Futures): The December Kansas City contract closed at $4.17 3/4, up 4 3/4 cents for the week. While weekly stochastics are indicating a secondary (intermediate-term) uptrend, the futures contract has not broken out of its sideways pattern between $4.25 3/4 and $3.95. If a bullish breakout is seen, initial resistance is pegged at $4.58 1/2. This price marks the 23.6% retracement level of the previous downtrend from $6.65 through the low of $3.95.

HRS Wheat (Futures): The December Minneapolis contract closed at $5.28 1/2, up 6 1/2 cents for the week. While the secondary (intermediate-term) trend remains up, the minor (short-term) trend has turned down. Initial minor support is at $5.18 1/2, a price that marks the 33% retracement level of the previous minor uptrend from $4.80 1/4 through last Friday's high of $5.38. The 50% level is down at $5.09.

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