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 1/2, up 9 1/2 cents for the week. Despite the higher weekly close the NCI.X remains in a secondary (intermediate-term) downtrend. However, it has rallied off its initial test of support at $3.18 1/4, a price that marks the 38.2% retracement level of the previous uptrend from $2.85 1/4 through the high of $3.38 1/2. Still, weekly stochastics are bearish indicating the NCI.X could ultimately test the 50% retracement level of $3.12 or possibly the 61.8% retracement level of $3.05 1/2.

Corn (Old-crop Futures): The May contract closed 8.00cts higher at $3.64 1/4. The key factor for the old-crop May contract is its minor (short-term) trend turned up early last week. Minor resistance is at $3.66 3/4, the 38.2% retracement level of the previous downtrend from $3.87 1/4 through the low of $3.54 1/4. However, given the markets bullish daily stochastics the contract should extend its minor uptrend to the 50% or possibly 61.8% retracement levels of $3.70 3/4 and $3.74 3/4.

Corn (New-crop Futures): The December 2017 contract closed 8.75cts higher at $3.88 1/4. Similar to old-crop May, the minor (short-term) trend of new-crop December corn turned up early last week. Next resistance is at $3.91, the 50% retracement level of the previous downtrend from $4.03 3/4 through the low of $3.78 1/4. The 61.8% retracement level is up at $3.94 with a 76.4% retracement taking the contract back to 3.97 3/4.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $8.70 1/2, down 28 cents for the week. The NSI.X extended its sell-off last week, falling below support 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 $9.46, down 29 3/4 cents for the week. The contract is within striking distance of its previous low of $9.37 1/4, while both weekly and daily stochastics indicate a sharply oversold situation. This means May soybeans could uncover buying interest, possibly to the point of establishing a secondary (intermediate-term) uptrend on its weekly charts.

Soybeans (New-crop Futures): The November 2017 contract closed at $9.54, down 23 cents for the week. The secondary (intermediate-term) trend remains down as the contract tests support at $9.50. This price marks the 50% retracement level of the previous uptrend from $8.57 through the high of $10.43. However weekly stochastics are near the oversold level of 20%, meaning a bullish crossover is possible in the weeks ahead.

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