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 $3.08 1/2, down 1 1/4 cents for the week. The NCI.X is in a secondary (intermediate-term) sideways trend 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 $3.02 (week of August 21). If bullish momentum fails, support remains at $3.00.

Corn (Old-crop Futures): The December 2017 contract closed 1.25cts lower at $3.53 1/2. The secondary (intermediate-term) trend turned sideways last week as the contract lost bullish momentum. Support is at the contract low of $3.44 1/4 with resistance still pegged at $3.63 3/4, a price that marks the 23.6% retracement level of the previous secondary downtrend from $4.22 3/4 through the contract low.

Corn (New-crop Futures): The December 2018 contract closed 0.75ct lower at $3.96 1/2. December 2018 corn's secondary (intermediate-term) trend remains sideways-to-down. Support is at $3.88 3/4, a price that marks the 76.4% retracement level of the previous secondary uptrend from the contract low of $3.76 1/4 through the high of $4.29 1/2. Resistance is at the 4-week high of $4.02 1/4.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $9.11 3/4, up 11 1/2 cents for the week. The market's secondary (intermediate-term) trend remains up. However, the minor (short-term) uptrend on its daily chart looks to be nearing an end as the NSI.X tests resistance at $9.11 1/2. If the short-term trend turns down, the previous low of $8.60 1/2 becomes a possible target.

Soybeans (Old-crop Futures): The November 2017 contract closed at $9.84 1/4, up 15 1/2 cents for the week. While the contract's secondary (intermediate-term) trend remains up, the minor (short-term) uptrend on its daily chart looks to be nearing an end. SX7 tested resistance between $9.84 and $9.99 last Friday, posting a high of $9.87. Daily stochastics are now in position for a bearish crossover above the overbought level of 80%, a signal that the minor trend has turned down.

Soybeans (New-crop Futures): The November 2018 contract closed at $9.98 1/2, up 12 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.

To track my thoughts on the markets throughout the day, follow me on Twitter: www.twitter.com\DarinNewsom

Comments

To comment, please Log In or Join our Community .