Technically Speaking

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.29, down 7 cents for the week. Seasonally the cash corn market tends to trend down through November. Last Friday's settlement leaves open the possibility of a minor (short-term) island top on its weekly chart if the market loses more than 5 cents Monday. Nevertheless, the secondary (intermediate-term) and major (long-term) trends remain up. Initial resistance remains at $3.50. Support is at $3.00.

Corn (Futures): The December contract closed 9.25cts lower at $3.67 1/2. The contract is testing initial support at $3.60, a price that marks the 33% retracement level of its initial rally from $3.18 1/4 through the recent high of $3.81. Given the market's seasonal tendency to trend down in November and the continued bearishness of its forward curve, the December contract could look to test support at the 67% retracement level of $3.39.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $9.79, down 7 cents for the week. Technical indicators continue to show the secondary (intermediate-term) trend is up, with an initial target of $10.66. This price marks the 33% retracement level of the previous downtrend from $14.97 through the low of $8.50. Seasonally the cash market tends to trend sideways to down in November. However, a weakening carry in the futures market's forward curve could provide stronger than normal support.

Soybeans (Futures): The November contract closed 12.50cts lower at $10.36 3/4. Despite the lower weekly close the secondary (intermediate-term) trend remains up. Resistance is near $10.54 1/4, a price that marks the 38.2% retracement level of the previous downtrend from $12.84 through the low of $9.12 1/4. However, the market's forward curve continues indicates a commercial outlook that is growing more bullish, supporting a possible extension of the uptrend to the 50% retracement level of $10.98 to possibly the 61.8% level of $11.42.

Wheat (Cash): The DTN National SRW Wheat Index (SR.X, national average cash price) closed at $4.79, down 14 cents for the week. Last week's action came up short of establishing a bearish key reversal on the weekly chart, meaning the cash market could turn sideways over the coming weeks. Support is between $4.63 and $4.50, the 50% and 67% retracement levels of the initial leg of the secondary uptrend from $4.25 through the recent high of $5.00.

SRW Wheat (Futures): The December Chicago contract closed 18cts lower at $5.14 1/2. Last week's sell-off established a minor (short-term) downtrend while the secondary (intermediate-term) trend turned sideways. Support is pegged between $5.06 and $4.92, roughly the 50% and 67% retracement levels of the recent rally from $4.66 1/4 through the high of $5.45 1/2.

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