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 1/4, down 5 1/4 cents for the week. The secondary (intermediate-term) trend still looks to be down. The NCI.X closed below its previous low weekly close of $3.26 3/4 (week of January 23), confirming the bearish crossover by weekly stochastics above the overbought level of 80% from that same week and the week of February 13. Initial support is down at $3.17 1/2, a price that marks the 33% retracement level of the previous uptrend from $2.85 1/4 through the high of $3.37 1/2.

Corn (Old-crop Futures): The May contract closed 4.75cts lower at $3.70 3/4. Unlike the NCI.X, May futures are in a secondary (intermediate-term) sideways trend. However, its minor (short-term) trend is down on the daily chart with initial support at $3.68 1/4, then $3.62. These prices mark the 50% and 67% retracement levels of the previous minor uptrend. Daily stochastics remain bearish above the oversold level of 20%, with daily volume increasing as the contracts sells off.

Corn (New-crop Futures): The December 2017 contract closed 3.25cts lower at $3.91. The contract's secondary (intermediate-term) trend is now sideways between resistance at its 4-week high of $4.03 3/4 and support the 4-week low of $3.83 3/4. Similar to old-crop May, Dec corn's minor (short-term) trend is down with initial support at 3.89 3/4, then $3.85.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $9.37 1/2, down 21 cents for the week. Despite another lower close the secondary (intermediate-term) trend remains sideways trend on its weekly close chart. However, its minor (short-term) trend is down and testing support at $9.38 3/4. This price marks the 50% retracement level of the previous uptrend from $8.77 3/4 through the high of $10.00. Daily stochastics are well below the oversold level of 20%, suggesting the NSI.X could move to a minor uptrend in the near future.

Soybeans (Old-crop Futures): The May contract closed at $10.24 1/4, down 19 cents for the week. Old-crop futures still look to be in a secondary (intermediate-term) sideways trend. Similar to the NSI.X, its minor (short-term) downtrend looks to be nearing an end as it tests support at $10.21 3/4. This price marks the 76.4% retracement level of the previous uptrend from $10.01 1/4 through the high of $10.88 1/4, with Friday's low of $10.20 looking like a possible end of Wave C (third wave) of a 3-wave downtrend as daily stochastics near a bullish crossover below the oversold level of 20%.

Soybeans (New-crop Futures): The November 2017 contract closed at $10.07, down 11 1/4 cents for the week. The prevailing secondary (intermediate-term) trend remains down with the last signal by weekly stochastics a bearish crossover above the overbought level of 80% (week of November 28, 2016). The recent rally off support at $9.81 to test trendline resistance near $10.29 looks to be Wave B (second wave) of a normal 3-wave downtrend. The minor (short-term) trend remains down with a target price of $9.93 1/4.

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

Comments

To comment, please Log In or Join our Community .