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 $3.40 1/4, down 4 1/2 cents for the week. The NCI remains in a secondary (intermediate-term) downtrend on its weekly close-only chart. Initial support is at $3.33 1/4, a price that marks the 38.2% retracement level of the previous uptrend from $3.00 1/2 through the high of $3.53 1/4. Weekly stochastics are bearish above the overbought level of 80%, meaning bearish momentum could take the NCI to a deeper retracement.

Corn (Old-crop Futures): The July 2018 contract (analyzed for DTN Strategy purposes) closed 5 1/4 cents lower at $3.85 3/4. The secondary (intermediate-term) downtrend led to a test of near $3.77 1/2. However, the contract left a bearish price gap last week between $3.90 1/2 and $3.90. Weekly stochastics remain bearish, below the overbought level of 80%.

Corn (New-crop Futures): The December 2018 contract closed 4 1/2 cents lower at $3.99 1/4. The market remains in a secondary (intermediate-term) downtrend, with last week's low of $3.91 1/2 a test of support at $3.91 3/4, a price that marks the 61.8% retracement level of the previous uptrend from $3.79 1/4 through the recent high of $4.12. Weekly stochastics are bearish, moving back below the overbought level of 80%.

Soybeans (Cash): The DTN National Soybean Index (NSI, national average cash price) closed at $9.50 1/2, down 20 3/4 cents for the week. The NSI remains in a secondary (intermediate-term) downtrend on its weekly close-only chart. Initial support is near $9.56, a price that marks the 23.6% retracement level of the previous uptrend from $8.40 through the high of $9.91 3/4. The 38.2% retracement level is down at $9.33 3/4.

Soybeans (Old-crop Futures): The May contract closed at $10.28 1/4, down 21 1/4 cents for the week. The contract looks to have established a secondary (intermediate-term) downtrend as it posted a new 4-week low of $10.09 1/4. Weekly stochastics are bearish below the overbought level of 80%.

Soybeans (New-crop Futures): The November 2018 contract closed at $10.26 1/2, down 14 1/2 cents for the week. The contract moved into a secondary (intermediate-term) downtrend as it posted a new 4-week low, and its lower weekly close resulted in a bearish crossover by weekly stochastics above the overbought level of 80%. Initial support is near $10.18 1/2, then $10.00 1/2.

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