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 $3.38 1/2, up 12 1/4 cents for the week. Cash corn resumed its seasonal secondary (intermediate-term) uptrend with next resistance near $3.42 3/4. This price marks the 50% retracement level of the previous downtrend from $4.00 1/2 through the low of $2.85 1/4. However, the market remains overbought and showing signs of building a longer-term top.

Corn (Old-crop Futures): The May contract closed 10.00cts higher at $3.80 3/4. Similar to the NCI.X, May futures look to have resumed its seasonal secondary (intermediate-term) uptrend. Next resistance is at $3.93 3/4, a price that marks the 50% retracement level of the previous downtrend from $4.55 through the low of $3.32 1/2. When this test of resistance occurs, weekly stochastics should be above the overbought level of 80% and nearing a possible bearish crossover.

Corn (New-crop Futures): The December 2017 contract closed 8.25cts higher at $3.99 1/4. The contract's resumed its secondary (intermediate-term) uptrend with a target of $4.07 1/2. This price marks the 76.4% retracement level of the previous downtrend from $4.22 3/4 through the low of $3.58 1/2. When the contract tests this resistance, weekly stochastics should be above the overbought level of 80% and in position for a bearish crossover signaling the end of the uptrend and a move to a downtrend.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $9.56 3/4, up 19 1/4 cents for the week. The secondary (intermediate-term) trend remains sideways with the last secondary signal by weekly stochastics a bullish crossover below the oversold level of 20% (week of October 10, 2016). The NSI.X could soon resume its uptrend, with resistance still pegged between $9.75 1/4 and $10.01 1/4.

Soybeans (Old-crop Futures): The May contract closed at $10.37 1/2, up 13 1/4 cents for the week. May soybeans posted a bullish outside range last week, indicating it could test the high side of its ongoing secondary (intermediate-term) sideways trend. Resistance remains between $10.56 1/2 and $10.73 3/4 while week stochastics are neutral-to-bearish below the overbought level of 80%.

Soybeans (New-crop Futures): The November 2017 contract closed at $10.22, up 15 cents for the week. Despite last week's higher close the secondary (intermediate-term) trend remains down. The last signal by weekly stochastics was 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 $10.26 still looks to be Wave B (second wave) of a normal 3-wave downtrend.

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