Technically Speaking

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.45, up 16 cents for the week. The secondary (intermediate-term) trend of the cash market remains up. The NCI.X is testing initial price resistance at $3.50, a price that marks the 50% retracement level of the previous downtrend from $4.86 through the low of $2.81. Weekly stochastics remain bullish, and with the December to March futures spread in position to establish a possible uptrend, the NCI.X could test the 50% retracement level of $3.84.

Corn (Futures): The December contract closed 14.25cts higher at $3.81 1/4. The secondary (intermediate-term) trend remains up. The December contract moved above initial resistance near $3.84 1/2, a price that marks the 33% retracement level of the previous downtrend from $5.24 1/2 through the low of $3.18 1/4, before falling back slightly at last Friday's close. Weekly stochastics remain bullish, though are approaching the overbought level of 80%. With the commercial outlook becoming less bearish, as the December to March futures spread tests resistance (weekly close only) at the 12 1/2 cent carry level, the December contract could look to test the 50% retracement level near $4.17 3/4. Price resistance in the March is at $3.94 1/2 and $4.26 3/4.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $9.66, down 13 cents for the week. The secondary (intermediate-term) trend has turned sideways, in step with the cash market's seasonal indexes (5-year and 10-year) through late November. Support remains at the recent low of $9.46 with resistance at last week's high of $10.08. Pressure could come from the recent strengthening of the carry in the January to March futures spread.

Soybeans (Futures): The January contract closed 14.25cts lower at $10.22 1/2. Last week's spike high of $10.86 1/4 tested resistance between $10.54 1/4 and $10.98, prices that mark the 38.2% and 50% retracement levels of the previous downtrend from $12.84 through the low of $9.12 1/4. The lower close turned the minor (short-term) trend from sideways to down. Support is pegged between $10.19 3/4 and $9.99 1/4, the 38.2% and 50% retracement levels of the initial leg up of the secondary (intermediate-term) uptrend. The commercial outlook is growing less bullish, as the January to March futures spread came under pressure last week.

Wheat (Cash): The DTN National SRW Wheat Index (SR.X, national average cash price) closed at $5.24, up 45 cents for the week. The secondary (intermediate-term) trend remains up as the SR.X moved above initial resistance at $5.20. This price marks the 335 retracement level of the previous downtrend from $7.11 through the low of $4.25. Given the commercial strength of the futures market, as indicated by the strong uptrends in both the December to March and March to May futures spreads, the SR.X could test the 50% retracement level at $5.68. Weekly stochastics remain bullish.

SRW Wheat (Futures): The December Chicago contract closed 46cts higher at $5.60 1/2, posting a bullish outside range (below last week's low, above last week's high, higher weekly close). With weekly stochastics growing more bullish the secondary (intermediate-term) trend remains up. Initial resistance is at $5.65 3/4, a price that marks the 33% retracement level of the previous downtrend from $7.65 through the low of $4.66 1/4. Given the bullish commercial outlook indicated by the weakening carry of the December 2014 through May 2015 forward curve, the December contract could make a run at the 50% retracement level near $6.15 3/4. Price resistance for the heavier traded March contract are $5.78 1/2 and $6.28.

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