Technically Speaking

Weekly Analysis: Corn and Soybean Markets

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.17 1/4, down 9 3/4 cents for the week. The NCI.X continues to show a rare expanding triangle top on its weekly close chart. The previous week's rally was a minor retracement of the initial sell-off from $3.38 1/2 through $3.22 3/4. Weekly stochastics remain bearish below the overbought level of 80%. The downside targets for the NCI.X (weekly close only) are $3.12 and $3.05 1/2.

Corn (Old-crop Futures): The May contract closed 11.25cts lower at $3.56 1/4. May corn posted a bearish outside range last week indicating its secondary (intermediate-term) trend could gain momentum. Weekly stochastics remain above the oversold level of 20%, also indicating there is more room for the contract to move lower. Next support is at $3.50 3/4, a price that marks the 67% retracement level of the previous rally from $3.32 1/2 through the high of $3.87 1/4.

Corn (New-crop Futures): The December 2017 contract closed 10.25cts lower at $3.79 1/2. Similar to old-crop May, new-crop December posted a bearish outside range last week indicating its secondary (intermediate-term) trend could gain strength. Next support is pegged at $3.73 1/2, a price that marks the 67% retracement level of the previous rally from $3.58 1/2 through the high of $4.03 3/4. Weekly stochastics remain bearish above the oversold level of 20%.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $8.98 3/4, down 23 cents for the week. The NSI.X continued its sell-off last week, falling below support at $9.09 1/4 with its next target down at $8.79 3/4. Weekly stochastics remain bearish, but are below the oversold level of 20%. This could eventually lead to renewed buying interest.

Soybeans (Old-crop Futures): The May contract closed at $9.75 3/4, down 24 1/4 cents for the week. The contract's secondary (intermediate-term) downtrend continues to strengthen as it tests support at $9.73. This price marks the 76.4% retracement level of the previous uptrend from $9.37 1/4 through the high of $10.88 1/4. If this support fails to hold the contract could look at a full retracement back to its previous low.

Soybeans (New-crop Futures): The November 2017 contract closed at $9.77, down 16 1/2 cents for the week. The 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). Next support is at $9.50, the 50% retracement level of the previous uptrend from $8.57 through the high of $10.43.

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