Technically Speaking

Weekly Analysis: Corn and Soybean Markets

Darin Newsom
By  Darin Newsom , DTN Senior Analyst
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Source: DTN ProphetX

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.10, up 1 1/2 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 $3.02 (week of August 21). The 38.2% retracement level is up at $3.19 3/4.

Corn (Old-crop Futures): The December 2017 contract closed 1.75cts higher at $3.55 1/4. The secondary (intermediate-term) trend remains sideways between support at the contract low and resistance at $3.62 3/4. The latter marks the 23.6% retracement level of the previous downtrend from $4.22 3/4 through the contract low. Weekly stochastics have turned bullish below the oversold level of 20%, indicating bullish momentum should start to build, leading to an upside breakout. If so next resistance is at the 38.2% retracement level of $3.74 1/4, then the 50% retracement mark of $3.83 1/2.

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Corn (New-crop Futures): The December 2018 contract closed 3.00cts higher at $3.99 1/2. December 2018 corn's secondary (intermediate-term) trend remains sideways. 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 $8.90 1/2, down 21 1/4 cents for the week. The market's secondary (intermediate-term) trend turned sideways with last week's sell-off. Resistance is at $9.44, a price that marks the 38.2% retracement level of the previous downtrend from $11.12 through the low of $8.40. Support is at $8.76, the low weekly close from the week of August 14, 2017.

Soybeans (Old-crop Futures): The November 2017 contract closed at $9.68 1/4, down 16 cents for the week. While the contract's secondary (intermediate-term) trend remains up, the minor (short-term) trend on its daily chart is down. It will be interesting to see if Nov beans (17) resume this downtrend following Friday's post-USDA report rally. The contract tested minor trendline support and retracement support at $9.54 with Friday's low of $9.55 1/4. Daily stochastics remain bearish. If the contract does resume its downtrend, next support is at $9.46 1/4.

Soybeans (New-crop Futures): The November 2018 contract closed at $9.86 1/4, down 12 1/4 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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