Technically Speaking

Weekly Analysis: Corn and Soybean Markets

Source: DTN ProphetX

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.26 3/4, down 7 1/4 cents for the week. The lower close led to a bearish crossover by weekly stochastics above the overbought level of 80%, setting the stage for a possible secondary (intermediate-term) downtrend. If the trend has turned down, initial support is pegged at $3.17 3/4. This price marks the 33% retracement level of the recent uptrend. Resistance is still up at $3.42 3/4.

Corn (Old-crop Futures): The March contract closed 7.25cts lower at $3.62 3/4. Weekly stochastics continue to indicate the secondary (intermediate-term) trend is up, though the contract dipped back below resistance at $3.67 3/4. If the trend is up, the upside target remains at $3.89 1/4. However, given last week's close, the contract could also grind back to a test of the support near $3.47.

Corn (New-crop Futures): The December 2017 contract closed 6.50cts lower at $3.89 1/4. While the secondary (intermediate-term) trend remains up, the contract's minor (short-term) sideways trend resulted in a test of initial support at $3.89 1/4. With weekly stochastics still bullish, and below the overbought level of 80%, look for Dec corn to retest its recent high of $3.96 3/4.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $9.72 3/4, down 18 1/4 cents for the week. Though weekly stochastics remain bullish, last week's sell-off set the stage for a possible double-top near resistance at $9.96 3/4. After that the NSI.X should be in position to begin a 3-Wave secondary (intermediate-term) downtrend.

Soybeans (Old-crop Futures): The March contract closed at $10.49 1/4, down 18 1/4 cents for the week. Though the contract remains in a secondary uptrend, its minor (short-term) trend has turned down. This could lead to a test of minor support between $10.46 3/4 and $1.36 1/2. At that point the contract could find renewed buying interest.

Soybeans (New-crop Futures): The November 2017 contract closed at $10.25 1/4, down 3 1/2 cents for the week. The contract remains in a secondary (intermediate-term) 3-Wave downtrend, With Wave B (second wave) appearing to have come to an end. The minor (short-term) trend has turned down again, indicating Wave C (third wave) has likely begun. If so the contract should fall below support at $9.81, making its way toward next support at $9.50. This price marks the 50% retracement level of the previous uptrend from $8.57 through the high of $10.43.

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