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 $3.15, up 6 3/4 cents for the week. Cash corn's secondary (intermediate-term) uptrend continues to strengthen on its weekly close-only chart. Next resistance is near $3.18 3/4, a price that marks the 38.6% retracement level of the previous downtrend from $3.48 through the low of $3.00. The 50% retracement level is up near $3.24 1/4. Weekly stochastics remain bullish but nearing the overbought level of 80%.

Corn (Old-crop Futures): The March 2018 contract closed 4.50cts higher at $3.52. Last week saw the contract establish a bullish 2-week reversal as it closed near its weekly high of $3.52 1/2 a week after closing near its new low of $3.46 1/2. Meanwhile, weekly stochastics established a bullish crossover below the oversold level of 20%, also indicating the secondary (intermediate-term) has turned up. The initial upside target is $3.65 1/4, the 23.6% retracement level of the previous downtrend from $4.26. Beyond that the 38.2% retracement level is near $3.76 3/4.

Corn (New-crop Futures): The December 2018 contract closed 4.50cts higher at $3.84 1/2. While there are similarities to old-crop, new-crop December 2018 did not see a bullish crossover by weekly stochastics below the oversold level of 20%. Still, a change to a secondary (intermediate-term) uptrend looks possible putting initial resistance at $3.91, the 23.6% retracement level of the previous downtrend from $4.29 1/2 through last week's new contract low of $3.79 1/4.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $8.81 1/4, down 15 1/2 cents for the week. Cash soybeans remain in a secondary (intermediate-term) downtrend, leaving a second consecutive bearish price gap on its weekly chart last week. With weekly stochastics still bearish and above the oversold level of 20%, the NCI.X could test its previous low of $8.74 3/4 (week of October 2). Major (long-term) trendline support for December is calculated at $8.66.

Soybeans (Old-crop Futures): The March contract closed at $9.60 1/4, down 17 3/4 cents for the week. The contract posted another new 4-week low of $9.57 1/4 last week, falling below trendline support connecting the lows of $9.22 1/4 (week of June 19, 2017) and $9.37 1/2 (week of August 14, 2017). With weekly stochastics still bearish and above the oversold level of 20%, next support is at those previous low prices.

Soybeans (New-crop Futures): The November 2018 contract closed at $9.73, down 14 3/4 cents for the week. Similar to old-crop, the new-crop November contract fell below trendline support calculated last week at $9.75 1/2. With weekly stochastics still bearish support is now at the previous low of $9.39 1/2 (week of August 14, 2017).

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