Technically Speaking

Corn: The March contract closed 7.75cts higher. The secondary (intermediate-term) trend on the weekly chart remains up. However, weekly stochastics are nearing the overbought level of 80% while the March contract tests resistance near $4.65. Last Friday's CFTC Commitments of Traders report showed noncommercial traders increasing their net-long futures position (as of Tuesday, February 18) by 18,093 contracts to 53,504 contracts.

Soybeans: The March contract closed 33.25cts higher. The secondary (intermediate-term) trend remains up. Weekly stochastics are nearing the 80% level, indicating the market is approaching an overbought situation. March soybeans are testing the previous high of $13.77 3/4, supported by continued noncommercial buying interest. The most recent CFTC Commitments of Traders report showed this group adding 9,568 contracts to their net-long futures position.

Wheat: The Chicago March contract closed 11.25cts higher. The secondary (intermediate-term) trend on the weekly chart remains up. The nearby March contract is trading above initial resistance near $6.07 and could now target $6.35 1/2. The latter marks the 50% retracement of the previous sell-off from $7.20 1/2 through the recent low of $5.50 1/4. The weekly CFTC Commitments of Traders report showed noncommercial interests decreasing their net-short futures position by 13,509 contracts.

Cotton: The March contract closed 0.46cts lower. The market is nearing the establishment of a secondary (intermediate-term) downtrend, with weekly stochastics poised for a bearish crossover above the overbought level of 80%. If so, initial support is pegged at 84.47, a price that marks the 38.2% retracement level of the previous uptrend from 76.65 through the high of 89.31. Last Friday's weekly CFTC Commitments of Traders report showed noncommercial interests increasing their net-long futures position by 5,962 contracts.

Live Cattle: The April contract closed 0.35 higher. Despite the higher weekly close the secondary (intermediate-term) trend has turned down. The April contract has not been able to push through its previous high of $143.125, while the most recent weekly CFTC Commitments of Traders report showed noncommercial interests reducing their net-long futures position by 4,454 contracts. Bullish fundamentals should limit the potential sell-off, with initial support pegged near $136.40. This price marks the 38.2% retracement level of the previous uptrend from $125.55 through the recent high.

The most recent CFTC Commitments of Traders report was for positions held as of Tuesday, February 18.

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