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 1/2, up 5 cents for the week. The secondary (intermediate-term) downtrend in the NCI.X looks to have been replaced with a sideways trend. The NCI.X continues to hold support at $3.00, a price that marks the 76.4% retracement level of the previous uptrend from $2.85 1/4 through the high of $3.48. Weekly stochastics remain bullish after posting a crossover below the oversold level of 20% the week of August 28.

Corn (Old-crop Futures): The December 2017 contract closed 4.25cts higher at $3.48 3/4. The contract's secondary (intermediate-term) trend looks to have turned sideways, at least, last week though the argument for a new uptrend could also be made. Dec corn posted a bullish outside week, meaning it traded outside the previous week's range before closing higher. Weekly stochastics established a bullish crossover below the oversold level of 20% the week of September 5, though the contract has failed to generate bullish momentum since. With support at the contract low of $3.42 1/2, initial resistance is at the 4-week high of $3.56 1/4.

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Corn (New-crop Futures): The December 2018 contract closed 3.25cts higher at $3.94 1/2. December 2018 corn's secondary (intermediate-term) trend is 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.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $8.96 1/4, down 2 1/2 cents for the week. The NSI.X continues to consolidate between a downtrend connecting the highs of $9.62 1/2 (week of July 10) and $9.22 3/4 (week of October 9) and an uptrend connecting the lows of $8.40 (week of June 19) and $8.60 1/2 (week of August 14). Weekly stochastics are neutral, though the most recent secondary signal was a bullish crossover below the oversold 20% level the week of June 5.

Soybeans (Old-crop Futures): The January 2018 contract closed at $9.86 1/2, down 2 3/4 cents for the week. The contracts' secondary (intermediate-term) trend looks to be up, though trendline resistance connecting the highs of $10.54 1/4 (week of July 10) and $10.13 (week of October 9) continues to hold. This resistance is calculated at $10.03 1/2 this week. Meanwhile, the contract continues to hold Gann fan line support calculated this week at $9.86 1/4, though last week's settlement was close to that price. Weekly stochastics remain bullish and still well below the overbought level of 80%.

Soybeans (New-crop Futures): The November 2018 contract closed at $9.97 1/4, down 3/4 cent 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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