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 $3.35 1/4, up 3 cents for the week. Cash corn is a mix of chart signals dominated by sideways trends on its major (long-term) monthly, secondary (intermediate-term) weekly, and minor (short-term) daily charts.

Corn (Old-crop Futures): The July contract closed 1.5cts higher at $3.72 1/2. The secondary (intermediate-term) trend remains sideways with initial support at $3.60 1/2 and resistance at the recent high of $3.79 1/2. Based on the 19 cent sideways range, a move through resistance would indicate an extended rally to test resistance at $3.98 1/4 while a move through support implies a retest of the low at $3.60 1/4.

Corn (New-crop Futures): The December 2017 contract closed 1.50cts higher at $3.90 1/4. The contract's secondary (intermediate-term) trend remains sideways with initial support near $3.81 1/4, then $3.73 1/2. Resistance is at the recent high of $3.95 3/4, then $4.03 3/4.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $8.85, down 7 cents for the week. Despite a second consecutive lower weekly close the NSI.X remains in a secondary (intermediate-term) uptrend on its weekly close only chart. Support remains at $8.78 while initial resistance is at $9.25, the latter a price that marks the 23.6% retracement level of the previous downtrend from $11.12 through the low of $8.67 1/4. Weekly stochastics remain bullish just above the oversold level of 20%. National average basis (NSI.X minus the close of the July futures contract) strengthened about 3 cents last week.

Soybeans (Old-crop Futures): The July contract closed at $9.53, down 10 cents for the week. The contract now looks to be in a secondary (intermediate-term) sideways trend on its weekly chart. However, last week's low of $9.42 1/4 looks to be a double-bottom pattern with the previous low of $9.41 1/2. Weekly stochastics are below the oversold level of 20%, indicating the contract is already oversold and could possibly establish a secondary (confirming) bullish crossover. The risk is a move through the previous secondary low setting up an extended sell-off down to $9.04.

Soybeans (New-crop Futures): The November 2017 contract closed at $9.51 3/4, down 8 cents for the week. Similar to old-crop July, the contract now looks to be in a secondary (intermediate-term) sideways trend on its weekly chart. However, last week's low of $9.42 3/4 looks to be a double-bottom pattern with the previous low of $9.41 1/4. Weekly stochastics are below the oversold level of 20%, indicating the contract is already oversold and could possibly establish a secondary (confirming) bullish crossover. The risk is a move through the previous secondary low setting up an extended sell-off down to $8.93.

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