Technically Speaking

Monthly Analysis: Grain Markets

Source: DTN ProphetX

Corn (Cash): The DTN National Corn Index (NCI, national average cash price) closed at $3.61 1/2, down 1 1/2 cents for the month. The NCI remains in a major (long-term) uptrend. However, monthly stochastics are above the overbought level of 20%, putting the market in position for a possible bearish signal over the months ahead.

Corn (Futures): The July contract closed at $3.94, down 6 3/4 cents on the monthly chart. While the major (long-term) trend on the market's monthly close-only chart remains sideways-to-up, the lower monthly close could lead to the next round of long-term selling. By pattern the high was projected to occur during June 2018, with resistance at the July 2017 high of $4.17 1/4.

Soybeans (Cash): The DTN National Soybean Index (NSI, national average cash price) closed at $9.54, down 18 cents for the month. The NSI remains trendless long-term. Initial resistance on the monthly close-only chart is at February's settlement of $9.76. Trendline support is calculated in June at $8.88.

Soybeans (Futures): The July contract closed at $10.18 1/2, down 30 cents on the monthly chart. The major (long-term) trend for soybean futures remains sideways-to-up. Resistance remains near $10.67 1/4, a price that marks the 23.6% retracement level of the previous downtrend from $17.89 (September 2012) through the low of $8.44 1/4.

HRW Wheat (Cash): The DTN National HRW Wheat Index (HW.X, national average cash price) closed at $5.09, up 25 cents for the month. The major (long-term) trend on cash HRW wheat's monthly close-only chart is up. Next resistance is at 45.84, a price that marks the 50% retracement level of the previous downtrend from $8.89 (November 2012) through the low of $2.80 (August 2016).

HRW Wheat (Futures): The July Kansas City (HRW) contract closed at $5.42 1/2, up 5 cents for the month. The major (long-term) uptrend in HRW wheat continues to build momentum as the July contract posted a new 4-month high of $5.74 3/4 during May. Next resistance is at $5.77 1/4, the high from July 2017.

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