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 $3.25 1/4, down 6 cents for the week. The NCI.X remains in a secondary (intermediate-term) sideways trend on its weekly close-only chart. Resistance is at the double-top near $3.48 while support is between $3.24 and $3.16 1/2.

Corn (Old-crop Futures): The September contract closed 16.25cts lower at $3.76 1/4. The secondary (intermediate-term) trend remains sideways in a widening range. The contract tested support at $3.61 1/2 last week before rallying. Below that is its low of $3.48 1/4.

Corn (New-crop Futures): The December 2017 contract closed 7.00cts lower at $3.81. Dec corn's secondary (intermediate-term) trend still looks to be sideways in an expanding range between the recent high $4.17 1/4 and previous low of $3.74. Weekly stochastics are neutral-to-bearish, nearer the oversold level of 20% than the overbought level of 80%.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $8.88 1/4, down 51 1/4 cents for the week. Despite the lower weekly close the market's secondary (intermediate-term) trend remains up. The recent sell-off has been due to a minor (short-term) downtrend that looks to be nearing its end with a test of support at $8.86 3/4. Daily (short-term) stochastics are below the oversold level of 20% and in position for a bullish crossover signaling a move to a minor uptrend.

Soybeans (Old-crop Futures): The September contract closed at $9.52 1/4, down 53 3/4 cents for the week. Similar to the NSI.X, September soybeans' secondary (intermediate-term) trend remains up despite last week's lower close. The minor (short-term) downtrend on its daily chart looks to be nearing an end with a test of support at $9.48 3/4. This price marks the 67% retracement level of the previous minor uptrend from $9.05 1/4 through the high of $10.37 1/2. Daily stochastics are below thee oversold level of 20% and in position for a bullish crossover.

Soybeans (New-crop Futures): The November 2017 contract closed at $9.56 3/4 down 56 1/4 cents for the week. Similar to cash and old-crop September, new-crop November soybeans' secondary (intermediate-term) trend remains up despite last week's lower close. The contract's minor (short-term) downtrend looks to be nearing its end as daily stochastics sit below the oversold level of 20% while the contract tests minor support at $9.53 1/4. This price marks the 67% retracement level of the previous minor uptrend from $9.07 through the high of $10.47.

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