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 $3.14 3/4, up 8 1/2 cents for the week. The NCI.X posted a bullish outside range last week before closing higher. This would indicate the market's secondary (intermediate-term) trend has turned up. Next resistance is at $3.18 1/4, a price that marks the 38.2% retracement level of the previous downtrend from $3.57 1/4 through the low of $2.95 1/4. The 50% retracement level is up at $3.25 3/4. Weekly stochastics are bullish, and quickly moving toward the overbought level of 80%.

Corn (Old-crop Futures): The March 2018 contract closed 3.75cts higher at $3.58 3/4. Similar to the NCI.X, March corn posted a bullish outside range last week before closing higher. This confirms its secondary trend has turned up, a move first indicated by a bullish crossover by weekly stochastics, most recently the week of November 13. Initial resistance is at $3.67, a price that marks the 23.6% retracement level of the previous downtrend from $4.26 through the low of $3.48. The 38.2% retracement level is up at $3.78 1/4, with the 50% mark up at $3.87 1/4.

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Corn (New-crop Futures): The December 2018 contract closed 2.25cts higher at $3.89 3/4. December 2018 corn's secondary (intermediate-term) trend looks to have turned up last week as the contract posted a bullish outside range before closing higher. Initial resistance is between $3.92 3/4 and $3.99 3/4, prices that mark the 23.6% and 38.2% retracement levels of the previous downtrend from $4.29 1/2 through the recent low of $3.81 1/4.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $9.21 3/4, up 3 1/2 cents for the week. The NSI.X remains in a secondary (intermediate-term) sideways-to-up trend on its weekly close-only chart. Initial resistance is at the high weekly close of $9.22 3/4 from the week of October 9. Beyond that, resistance is pegged near $9.44. Weekly stochastics have climbed above the overbought level of 80%, in position for a possible bearish reversal over the weeks to come.

Soybeans (Old-crop Futures): The January 2018 contract closed at $9.94 1/4, up 1 cent for the week. The contract's secondary (intermediate-term) trend still looks to be sideways-to-up. Resistance remains at the recent high of $10.13 (week of October 9) with initial support at $9.71, then $9.61 1/4. The 4-week low is at $9.67. Weekly stochastics remain bullish below the overbought level of 80% indicating the contract has some room to move higher.

Soybeans (New-crop Futures): The November 2018 contract closed at $10.09, up 4 1/4 cents for the week. The contract looks to be in a secondary (intermediate-term) sideways trend. Resistance is at the previous high of $10.28 3/4 with initial support at the new 4-week low of $9.80 1/2.

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