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 $3.09 1/2, down 2 cents for the week. The NCI.X remains in a secondary (intermediate-term) uptrend on its weekly close-only chart. Initial resistance is at $3.13, a price that marks the 23.6% retracement level of the previous downtrend from $3.48 (week of June 5) through the low of $4.02 (week of August 21). Next resistance is between the 38.2% and 50% retracement levels of $3.19 3/4 and $3.25.

Corn (Old-crop Futures): The December 2017 contract closed 2.00cts lower at $3.54 3/4. The secondary (intermediate-term) trend remains up despite last week's lower close. Initial resistance at $3.62 3/4, the 23.6% retracement level of the previous downtrend from $4.22 3/4 through the low of $3.44 1/4. Next resistance is between $3.74 1/4 and $3.83 1/2.

Corn (New-crop Futures): The December 2018 contract closed 0.75ct lower at $3.97 1/4. Unlike the December 2017 futures contract, Dec 18 has not recently posted bullish technical signals, indicating the secondary (intermediate-term) trend is still down. However, if Dec 2017 rallies it would likely pull the 2018 contract higher as well.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $9.00 1/4, up 2 1/2 cents for the week. The market's secondary (intermediate-term) trend remains up. Next resistance on the market's weekly close-only chart is the high of $9.46 (week of July 17). Beyond that the next wave (wave 3 of 5) should peak near $9.76, the 50% retracement level of the previous downtrend from $11.12 through the low $8.40. It is important for the NSI.X to hold support at its recent low weekly close of $8.76 (week of August 14). Failure to do so could send cash soybeans tumbling back to support near the $8.40 level.

Soybeans (Old-crop Futures): The November 2017 contract closed at $9.68 3/4, up 6 3/4 cents for the week. The contract remains in a standard 5-wave secondary (intermediate-term) uptrend. Theoretically the peak of the next wave, Wave 3, should occur above the Wave 1 high of $10.47. However, a break of the Wave 2 low of $9.21 (week of August 14) could spark increased selling interest in the market.

Soybeans (New-crop Futures): The November 2018 contract closed at $9.85 3/4, up 4 3/4 cents for the week. The contract remains in a standard 5-wave secondary (intermediate-term) uptrend. Theoretically the peak of the next wave, Wave 3, should occur above the Wave 1 high of $10.28 3/4.

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