Technically Speaking
Darin Newsom DTN Senior Analyst

Sunday 06/01/14

Ag Markets: Weekly Analysis

Corn: The July contract closed 12.25cts lower. The secondary (intermediate-term) trend remains down. The futures contract has moved below support at $4.73, a price that marks the 50% retracement level of the uptrend from $4.21 3/4 through the high of $5.24 1/4, and is now poised for a test of the 67% retracement level of $4.55 3/4. Weekly stochastics remain bearish.

New-crop Corn: The December contract closed 17.75cts lower. The secondary (intermediate-term) trend is down as weekly stochastics remain bearish. The futures contract has fallen below support near $4.62 1/4, the 67% retracement level of the uptrend from $4.35 through the high of $5.17. This opens the door to a test of a pocket of support near $4.45.

Soybeans: The July contract closed 22.25cts lower. The secondary (intermediate-term) trend is sideways. However, weekly stochastics established another bearish crossover above the 80% mark indicating the trend could soon turn down. Initial support remains near $14.18, a price that marks the 33% retracement level of the uptrend from $11.80 through the recent high of $15.36 3/4.

New-crop Soybeans: The November contract closed 32.00cts lower. The secondary (intermediate-term) trend is now sideways to down. Weekly stochastics established a bearish crossover above the overbought level of 80%, indicating the trend could turn down. A move below the four-week low of $12.06 3/4 by the futures contract would confirm a secondary downtrend. Longer-term support is pegged near $11.95 3/4, a price that marks the 33% retracement level of the previous uptrend from $10.88 1/4 through the recent high of $12.79.

Wheat: The new-crop July Kansas City contract closed 22.00cts lower. The secondary (intermediate-term) is down. The futures contract closed below support at both $7.27 1/4, the 50% retracement level of the uptrend from $5.99 through the high of $8.55 1/2, and the previous low of $7.23 1/4. This sets the stage for a test of next support near $8.85 1/2, the 67% retracement level of the previous uptrend.

Cotton: The July contract closed 0.04ct lower. Weekly stochastics indicate the secondary (intermediate-term) trend remains down. However, the futures contract rallied off its test of support at 84.07, a price that marks the 67% retracement level of the uptrend from 77.74 through the high of 94.76. Given weekly stochastics remain bearish, look for the futures market to drift back toward another test of this support.

New-crop Cotton: The December contract closed 2.00cts lower. The secondary (intermediate-term) trend is down. The futures contract fell below support at 78.41, a price that marks the 67% retracement level of the uptrend from 75.25 through the high of 84.74. Given weekly stochastics remain bearish, look for the contract to test the previous low.

Live Cattle: The August contract closed $1.475 higher. The secondary (intermediate-term) trend remains down following the recent establishment of a bearish key reversal (week of May 20). Last week's rally resulted in a 67% retracement of the initial break from the new high of $140.90 through the low of $136.60. Given that weekly stochastics remain neutral to bearish the futures contract could come under pressure again, with support pegged near $135.35. This price marks the 33% retracement level of the contract's uptrend from its low of $124.20 through its recent high.

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

Posted at 5:22AM CDT 06/01/14 by Darin Newsom
Post a Blog Comment:
Your Comment:
DTN reserves the right to delete comments posted to any of our blogs and forums, for reasons including profanity, libel, irrelevant personal attacks and advertisements.
Blog Home Pages
August  2014
S M T W T F S
               1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
31                  
Subscribe to Technically Speaking RSS
Recent Blog Posts