Technically Speaking

Weekly Analysis: Wheat Markets

Source: DTN ProphetX

SRW Wheat (Cash): The DTN National SRW Wheat Index (SR.X, national average cash price) closed at $3.95 1/4, down 11 cents for the week. The secondary (intermediate-term) trend remain down with support is $3.89 1/2 then $3.78 1/4. These prices mark the 33% and 50% retracement levels of the previous uptrend from $3.44 and the recent high weekly close of $4.12 1/4.

SRW Wheat (New-crop Futures): The Chicago July 2017 contract closed at $4.56 1/4, down 12 cents for the week. Despite last week's sell-off the contract remains in a secondary (intermediate-term) uptrend. However, July Chicago is moving closer to a test of support at its 4-week low of $4.52 3/4.

HRW Wheat (Cash): The DTN National HRW Wheat Index (HW.X, national average cash price) closed at $3.63, down 13 cents for the week. Cash HRW looks to be building a head-and-shoulder top on its weekly close chart. This would indicate that the HW.X could bounce back to a weekly close near $3.70 over the next few weeks before selling off again. Weekly stochastics remain bearish above the overbought level of 80%.

HRW Wheat (New-crop Futures): The Kansas City July 2017 contract closed at $4.67 1/2, down 15 3/4 cents for the week. The contract posted a bearish outside range last week, indicating its secondary (intermediate-term) trend has turned down. Next support is at $4.61, a price that marks the 50% retracement level of the previous uptrend from $4.23 1/2 through the high of $4.98 1/4. The 67% retracement level is down at $4.48 1/2.

HRS Wheat (Cash): The DTN HRS Wheat Index (SW.X, national average cash price) closed at $4.95 3/4, down 9 1/2 cents for the week. The secondary (intermediate-term) trend remains down with next support at $4.86. This price marks the 50% retracement level of the previous uptrend from $4.35 through the high of $5.36 3/4.

HRS Wheat (New-crop Futures): The Minneapolis September 2017 contract closed at $5.52 1/4 down 8 1/4 cents for the week. The secondary (intermediate-term) trend remains down as the contract posted a new 4-week low of $5.50. Next support is at $5.49, a price that marks the 50% retracement level of the previous uptrend from $5.20 through the recent high of $5.78. The 67% retracement level is down at $5.39 1/4.

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