Technically Speaking

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.33, down 9 cents for the week. The secondary (intermediate-term) trend remains down with the NCI.X testing support of $3.31. This price marks the 50% retracement level of the previous uptrend from $2.81 through the high of $3.80. Weekly stochastics are in single digits, indicating a sharply oversold market and setting the stage for a potential bullish crossover in the coming weeks.

Corn (Old-crop): The July contract closed 8.50cts lower at $3.51 1/2 last week. July corn tested its contract low of $3.46 3/4 with last week's low of $3.48 1/4. With weekly stochastics near single digits, indicating a sharply oversold market, this sets up a potential double-bottom formation. However, if the contract moves to a new low the projected downside target would be $2.62. As with many other markets, July corn continues to see support come from commercial buying while Friday's CFTC Commitments of Traders report showed noncommercial interests adding 1,411 contracts to their net-short futures position.

Corn (New-crop): The December contract closed 9.75cts lower at $3.68 last week. The secondary (intermediate-term) trend is down, though the contract did hold above its low of $3.64 1/4 (posting a low last week of $3.65 1/4). This sets the stage for a potential double-bottom formation, a pattern that would be confirmed with a move to a new 4-week high in the weeks ahead. However, if the contract moves to a new low its downside target would be $2.88 1/2. Weekly stochastics are well below the oversold level of 20%, setting up a potential bullish crossover at some point.

Soybeans (Cash): The DTN National Soybean Index (NSI.X, national average cash price) closed at $9.01, up 12 cents for the week. The NSI.X closed near, but still below, support at $9.02. This price marks the 67% retracement level of the previous rally from $8.50 through the high of $10.08. Weekly stochastics remain below the oversold level of 20%, indicating a possible bullish crossover in the weeks ahead. Support could come from continued commercial buying in the futures market indicated by the strengthening inverse in the July to August futures spread.

Soybeans (old-crop): The July contract closed 9.75cts higher at $9.34 last week. After posting a new low of $9.20 1/2 July soybeans were able to rally to a higher weekly close. Weekly stochastics remain below the oversold level of 20%, nearing a bullish crossover due to the late week rally in the futures contract. Support continues to come from commercial buying, as indicated by the strengthening inverse in the July to August futures spread. However, Friday's CFTC Commitments of Traders report showed noncommercial traders continue to add to their net-short futures position.

Soybeans (new-crop): The November contract closed 1.25cts lower at $9.05 3/4 last week. Nov soybeans posted another new contract low of $8.98 1/4 before rallying. The coming weeks will see more attention paid to Nov soybeans as it moves closer to taking over role of most active (based on open interest) contract and registering on the long-term continuous monthly chart. Major (long-term) support is at the October 2014 low of $9.04. Weekly stochastics are below 20% indicating the contract is oversold.

Wheat (Cash): The DTN National SRW Wheat Index (SR.X, national average cash price) closed at $4.52, down 36 cents for the week. The secondary (intermediate-term) trend has turned sideways with support at the recent low of $4.38. Resistance remains at $5.00, a price that marks the 50% retracement level of the previous downtrend from $6.23 through the $4.38 low. The last signal in weekly stochastics remains a bullish crossover below the oversold level of 20% the week of March 16, though last week's sell-off led to a bearish crossover well below the overbought level of 80% turning stochastics neutral.

SRW Wheat (new-crop): The July Chicago contract closed 38.25cts lower at $4.77 last week. The secondary (intermediate-term) trend is sideways with resistance at the 4-week high of $5.30 1/4 and support at the contract low of $4.60 3/4. Weekly stochastics turned neutral last week with a bearish crossover well below the overbought level of 80%.

HRW Wheat (new-crop): The July Kansas City contract closed 47.75cts lower at $4.98 3/4 last week. The secondary (intermediate-term) trend turned sideways last week with weekly stochastics now neutral. Resistance is at the 4-week high of $5.64 1/2 with support at the contract low of $4.85 1/2.

The weekly Commitments of Traders report showed positions held as of Tuesday, May 26.

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