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 $3.68, up 7 cents for the week. The NCI continues to consolidate below its recent high of $3.72, with weekly stochastics above the overbought level of 80%. Support is at last week's low of $3.61 with resistance the recent high of $3.72.

Corn (Old-crop Futures): The July 2018 contract closed 6.00 cents higher at $4.02 1/2. Despite last week's higher close, July corn still looks to be in a secondary (intermediate-term) 3-wave downtrend. This could change if the contract takes out the previous high of $4.08 1/4. Initial support is at last week's low of $3.94 1/4, then $3.90 1/2. The latter marks the 38.2% retracement level of the previous uptrend from $3.62 through the $4.08 1/4 high.

Corn (New-crop Futures): The December 2018 contract closed 5.75 cents higher at $4.20 1/4. New-crop December corn still looks to be in a secondary (intermediate-term) downtrend following the bearish reversal on its weekly chart the week of May 7. However, this could be erased by a move to a new high this coming week, with next resistance at the previous high of $4.29 1/2. Weekly stochastics remain above the overbought level of 80%.

Soybeans (Cash): The DTN National Soybean Index (NSI, national average cash price) closed at $9.30, down 3 cents for the week. The NSI remains in a secondary (intermediate-term) 3-wave downtrend, with its weekly close below support at $9.34. This price marks the 38.2% retracement level of the previous uptrend from $8.40 through the high of $9.92. Next support at the 50% retracement level is pegged at $9.16. Weekly stochastics remain bearish after establishing a crossover above the overbought level of 80% the week of March 5, indicating the NSI has more room to extend its downtrend.

Soybeans (Old-crop Futures): The July contract closed at $9.98 1/2, down 4 3/4 cents for the week. July soybeans remains in a wide-ranging secondary (intermediate-term) sideways trend with boundaries of $9.65 1/4 (low the week of January 8) and $10.90 1/4 (high the week of February 26). Last week's range established a new 4-week low of $9.92 1/2. However weekly stochastics are nearing the oversold level of 20%, and given the continued sideways trend, could limit new selling interest.

Soybeans (New-crop Futures): The November 2018 contract closed at $10.08 1/4, down 6 cents for the week. November soybeans remain in a secondary (intermediate-term) 3-wave downtrend with the weekly close a test of next support near $10.07 3/4. This price marks the 38.2% retracement level of the previous uptrend from $9.23 1/2 through the high of $10.60. Given the bearishness of weekly stochastics and the contracts 3-wave pattern, Nov beans would be expected to test support between $9.91 3/4 and $9.75 3/4.

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