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 1/2, up 1/2 cent 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. Weekly stochastics have moved above the overbought level of 80%, in position for a bearish crossover that would signal the end of the secondary uptrend.

Corn (Old-crop Futures): The July 2018 contract (analyzed for DTN Strategy purposes) closed 1 1/2 cents lower at $3.67 1/4. Despite the lower weekly close the July contract still looks to be in a secondary (intermediate-term) uptrend based on the recent 2-week reversal and bullish crossover by weekly stochastics below the oversold level of 20% (week of November 13). However, given the market's major (long-term) downtrend the contract is vulnerable to moving back to a secondary downtrend, extending below its recently established low of $3.63 1/4.

Corn (New-crop Futures): The December 2018 contract closed 1/2 cent lower at $3.84. The contract's secondary (intermediate-term) trend looks to be up following the recent 2-week reversal off the low of $3.79 1/4 and bullish crossover by weekly stochastics below the oversold level of 20%. The initial upside target is near $3.91, a price that marks the 23.6% retracement level of the previous downtrend from $4.29 1/2.

Soybeans (Cash): The DTN National Soybean Index (NSI, national average cash price) closed at $8.85 3/4, up 4 1/2 cents for the week. Despite the higher weekly close cash soybeans remain in a secondary (intermediate-term) downtrend. Next support is down near $8.68 3/4.

Soybeans (Old-crop Futures): The May contract (analyzed for DTN Strategy purposes) closed at $9.73, up 1 3/4 cents for the week. Despite the higher weekly close the May contract remains in a secondary (intermediate-term) downtrend. The contract posted a new 4-week low of $9.66 before rallying, and weekly stochastics are bearish above the oversold level of 20%. Both would indicate the contract has more downside potential.

Soybeans (New-crop Futures): The November 2018 contract closed at $9.75 3/4, up 2 3/4 cents for the week. New-crop November soybeans remains in a secondary (intermediate-term) downtrend following the recent double-top near $10.28 3/4 and subsequent fall to a new 4-week low of $9.70. Next support is near $9.63 1/2, then $9.48 1/4. Weekly stochastics remain bearish above the oversold level of 20%.

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