Technical analysis of agricultural futures

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Some analysts are inclined to believe that weather problems in South America will increase demand for corn and soybeans from the US, in the case of corn this growth has taken place. Currently the US corn supplies from May-June are cheapest. For soybean situation is somewhat more complicated, because even with a decrease in gross yield, ending stocks are expected to increase, and stocks in the US predict a greater than 400 mln. bushels.

As mentioned last week, the penetration level of 382.5 cents per bushel led to a sharp rise in prices in the $ 4 area, above which failed to gain a foothold and he was the most difficult obstacle to sustainable uptrend. Level the same support as long-serving price range 370-376 cents per bushel, which crossed 20, 50 and 100-day weighted average. Volumes started to decrease and the downward trend returned. Histogram MACD, being higher than zero in lateral movement, don’t confirms the downward movement of recovery, so do not rush with the opening of "short" positions.

Despite Friday’s sales of funds, technical indicators provide variable signal with a penchant for upward movement. The resistance level is the price of 516 cents per bushel, which failed to break through last week, major long-term level of support is 449 cents per bushel. Index of relative strength begins to decrease, though remains in the green zone, which also makes clear trend movement as likely futures will depend on the dynamics of the market price of corn and soy complex.

Soy complex continues to grow, but despite 4-week highs, Friday downturn has led to the formation of "Bear" at the intersection of overbought stochastic above 80%, making term downward trend with the level of support of 892 cents per bushel. The level of resistance - 1034.75 cents per bushel. Relative strength index above 70, which indicates that too much purchasing activity of speculators.