Technically Speaking

Weekly Analysis: Corn and Soybean Markets

By Darin Newsom , DTN Senior Analyst
Source: DTN ProphetX

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.35, up 12 1/2 cents for the week. While the NCI.X remains in a secondary (intermediate-term) downtrend, it posted an impressive rally last week. Resistance is at the previous high of $3.38 1/2, while support is down at $3.18 1/4. The market's major (long-term) trend remains up with resistance at $3.39 1/2.

Corn (Old-crop Futures): The July contract closed 10.75cts higher at $3.78. The secondary (intermediate-term) trend remains sideways with support at $3.40 1/4 and resistance $3.98 1/4. Meanwhile, the contract's minor (short-term) uptrend looks to be nearing its end with resistance between $3.77 3/4 and $3.81 1/2. Daily stochastics remain below the overbought level of 80%, leaving the door open to an extension of the minor move to the $3.81 1/2 resistance mark.

Corn (New-crop Futures): The December 2017 contract closed 10.00cts higher at $3.94 1/2. Similar to old-crop May, the minor (short-term) trend of new-crop December corn remains up while the secondary (intermediate-term) trend is sideways. Minor resistance is between $3.94 and $3.97 3/4, with daily stochastics climbing above the overbought level of 80%.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $8.82, up 14 3/4 cents for the week. The secondary (intermediate-term) trend looks to have turned up last week as the rally in the cash market established a bullish crossover by weekly stochastics. If so initial resistance is at $9.25, a price that marks the 23.6% retracement level of the previous downtrend from $11.12 through the low of $8.67 1/4. The 38.2% retracement level is at $9.60 3/4.

Soybeans (Old-crop Futures): The July contract closed at $9.66 1/4, up 13 cents for the week. The contract established a bullish reversal on its weekly chart, trading outside the previous week's range and establishing a new low ($9.41 1/4) before closing higher. Also, weekly stochastics posted a bullish crossover below the oversold level of 20%. While a test of the new low is possible, initial resistance is at $9.81 3/4. This price marks the 23.6% retracement level of the previous downtrend from $11.13. The 38.2% retracement level is up near $10.07 3/4.

Soybeans (New-crop Futures): The November 2017 contract closed at $9.61 3/4, up 12 1/4 cents for the week. The secondary (intermediate-term) trend turned up last week as the contract posted a bullish outside range. At the same time, weekly stochastics are below the oversold level of 20% and in position for a possible bullish crossover. If the secondary trend has turned up, next resistance is near $9.81, a price that marks the 38.2% retracement level of the downtrend from $10.43 through last week's low of $9.41 1/2.

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