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 $3.65 3/4, down 23 1/ cents for the week. The secondary (intermediate-term) trend remains down on the weekly close only chart. The SR.X close below support at $3.66 3/4, a price that marks the 50% retracement level of the previous uptrend from $3.44 and the recent high weekly close of $4.12 1/4, putting the next target at the previous low.

SRW Wheat (New-crop Futures): The Chicago July 2017 contract closed at $4.21, down 21 3/4 cents for the week. The secondary (intermediate-term) trend remains down as the contract posted a new low of $4.16 1/4. Weekly stochastics are below the oversold level of 20%, setting the stage for a possible bullish crossover in the weeks to come.

HRW Wheat (Cash): The DTN National HRW Wheat Index (HW.X, national average cash price) closed at $3.15 1/2, down 20 1/2 cents for the week. The market remains in a secondary (intermediate-term) downtrend on its weekly close only chart, finishing below support at $3.18 1/4. This puts next support at the previous low of $2.89 3/4.

HRW Wheat (New-crop Futures): The Kansas City July 2017 contract closed at $4.17 1/4, down 22 cents for the week. The secondary (intermediate-term) trend remains down as the contract posted a new low of $4.11 1/4. Weekly stochastics remain below the oversold level of 20%.

HRS Wheat (Cash): The DTN HRS Wheat Index (SW.X, national average cash price) closed at $4.87 1/4, down 2 1/2 cents for the week. Despite the lower close the secondary (intermediate-term) trend looks to be turning up on the SW.X weekly close only chart. Weekly stochastics established a bullish crossover below the oversold level of 20%, while the SW.X held support between $4.86 and $4.74.

HRS Wheat (New-crop Futures): The Minneapolis September 2017 contract closed at $5.42 1/4 down 4 1/2 cents for the week. Despite the lower close the secondary (intermediate-term) trend still looks to be up. This is based on the contract posting a bullish reversal the previous week. However, weekly stochastics have not moved below the oversold level of 20% to establish a bullish crossover. This leaves the contract vulnerable to a retest of its recent low.

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