Technically Speaking

Weekly Analysis: Corn and Soybean Markets

Source: DTN ProphetX

Corn (Cash): The DTN National Corn Index (NCI, national average cash price) closed at $3.45, down 8 1/2 cent for the week. The has recently moved into a secondary (intermediate-term) downtrend on its weekly close-only chart, following a bearish crossover by weekly stochastics above the overbought level of 80%. Initial support is at $3.27 1/4, a price that marks the 23.6% retracement level of the previous uptrend from $2.85 1/4 through the recent high of weekly close of $3.53 1/4.

Corn (Old-crop Futures): The July 2018 contract (analyzed for DTN Strategy purposes) closed 7 cents lower at $3.91. The contract posted a bearish reversal last week, indicating its secondary (intermediate-term) trend has turned down. This coincided with a bearish crossover by weekly stochastics above the overbought level of 80%. Next support is near $3.87 1/4, a price that marks the 38.2% retracement level of the previous uptrend from $3.62 through last week's high of $4.02 3/4.

Corn (New-crop Futures): The December 2018 contract closed 3 1/2 cents lower at $4.03 3/4. Though not as technically clear as old-crop July, new-crop December looks to have moved into a secondary (intermediate-term) downtrend last week. The difference between the two is that Dec did not take out the previous week's low after posting a new high for this uptrend. However, the lower weekly close did create a bearish crossover by weekly stochastics above the overbought level of 80%. Follow-through selling could take the contract to a test of next support near $3.99 1/2, and possibly $3.95 3/4. These prices mark the 38.2% and 50% retracement levels of the previous uptrend from $3.79 1/4 through last week's high of $4.12.

Soybeans (Cash): The DTN National Soybean Index (NSI, national average cash price) closed at $9.71 1/4, up 11 1/4 cents for the week. Despite the higher weekly close the NSI still looks to be in a secondary (intermediate-term) downtrend on its weekly close-only chart. However, the rally off an initial test of support near $9.56 sets up the potential for follow-through buying to establish a double-top near the recent high of $9.91 3/4. Weekly stochastics did establish a bearish crossover above the oversold level of 80%.

Soybeans (Old-crop Futures): The May contract closed at $10.49 1/2, up 10 1/4 cents for the week. The contract remains in a secondary (intermediate-term) sideways trend between last week's low (4-week low) of $10.27 and the recent high of $10.82 1/2. Bullish short-term stochastics on the contract's daily chart would suggest continued buying could push May soybeans higher, possibly establishing a double-top formation during the coming weeks.

Soybeans (New-crop Futures): The November 2018 contract closed at $10.41, up 11 cents for the week. The contract remains in a secondary (intermediate-term) uptrend, though weekly stochastics are above the overbought level of 80%. Resistance is at the recent high of $10.48.

To track my thoughts on the markets throughout the day, follow me on Twitter: www.twitter.com\DarinNewsom

Comments

To comment, please Log In or Join our Community .