January 25, 2017
|| 01 cents
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|| 07 cents
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|| 0.90 points
This week corn struggled with clearing the 50% retracement levels from the July 2016 tops to the Labour Day weekend lows. This is a very important resistance level on our charts. The 50% move up coincides with our resistance of $3.70 that has been in our target zone for some time. If we can convincingly close above this $3.70 level, our next upside target is the $3.80 - $3.85 resistance. For the time being, however, our overhead resistance remains at $3.70 while support is seen at $3.40.
Short term and weekly indicators are still positive, but the main trend is still down.
After reaching our resistance of $10.70 we are now retracing on the soybeans. From these levels we are getting the expected pullback and we anticipate support at the $10.25 - $10.45 range. Eventually, the extension of last week’s move should put our next upside target around $11 or just above there. Initial support is still at the $10.25 level on March, and once we close convincingly above $10.75, our next target is the $11 - $11.20 area.
Short and intermediate term indicators are still positive but the main trend is still down.
Wheat continues to impress, as our charts are showing good support around $4 - $4.20 and the intraday chart shows us a pattern that suggests we will see the next upside shot take us to, or close to, the $4.50 top made back in October. This is an important level on the March CBOT chart as it completes an inverted head and shoulders formation. I would expect a pullback from that level, but if we manage to clear the highs convincingly we could be heading towards a more significant resistance level and a major target of $4.60. Our red buy signal from three weeks ago is still intact.
CBOT March wheat initial support is still seen at the $4.20 level and again at $4, while overhead resistance is at the $4.40 - $4.45 level.
Both short and intermediate term indicators are still positive but the primary trend is still down.
Harvest 2017 crop cash prices as of close on January 25, 2017
SWW @ $184.72 ($5.03/bu), HRW @ $184.72/MT ($5.03/bu),
HRS @ $219.79/MT ($5.98/bu), SRW @ $184.72/MT ($5.03/bu).