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 $3.05 1/4, down 4 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 $3.11 1/2, the close from the week of September 5. Beyond that the target is $3.23 1/2, a price that marks the 33% retracement level of the previous downtrend on the weekly close-only chart from $4.00 1/2 through the low of $2.85 1/4. Seasonally the NCI.X posts its low weekly close the first week of October, or last week's close.

Corn (Old-crop Futures): The December 2017 contract closed 5.25cts lower at $3.50. The secondary (intermediate-term) trend remains sideways between support at the contract low of $3.44 1/4 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 continue to hold below the oversold level of 20%, still indicating bullish momentum could start to build.

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Corn (New-crop Futures): The December 2018 contract closed 3.00cts lower at $3.96 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 recent high of $4.02 1/4.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $8.93 3/4, up 3 1/4 cents for the week. The market's secondary (intermediate-term) trend turned sideways. 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.

Soybeans (Old-crop Futures): The November 2017 contract closed at $9.72 1/4, up 4 cents for the week. The contract continues to consolidate within a range between the 4-week high of $9.87 and trendline support calculated this week at $9.35. The previous secondary (intermediate-term) signal by weekly stochastics was a bullish crossover below the oversold level of 20% the week of June 5. This would indicate the contract could return to a secondary uptrend with a move above resistance.

Soybeans (New-crop Futures): The November 2018 contract closed at $9.91 3/4, up 5 1/2 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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