Live Cattle: The February contract closed $0.725 lower at $125.525. While the secondary (intermediate-term) trend remains down, a sharp rally to close out the week allowed the contract to trim its loss. Given weekly and monthly stochastics are in an oversold situation the Feb contract could look to consolidate near major (long-term) support near $126.50.
Feeder Cattle: The January contract closed $3.375 lower at $148.75. The secondary (intermediate-term) trend remains down after the contract moved to a new major (long-term) low of $143.20. This was a test of major support between $146.70 and $138.80. Both the weekly and continuous monthly charts show thee contract possibly nearing the end of Wave C of a three-wave downtrend, though no bullish crossover by stochastics has yet been seen.
Lean hogs: The February contract closed $3.925 lower at $56.625 last week. One week after posting bullish technical signals, Feb lean hogs slipped back into a secondary (intermediate-term) sideways trend. Support is at the previous low of $53.975. Weekly stochastics remain neutral-to-bearish indicating addition pressure could be seen in the weeks ahead.
Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.50, down 1 cent for the week. The secondary (intermediate-term) trend is sideways-to-up with support at the recent low of $3.36 and resistance the 4-week high of $3.57. Weekly stochastics are bullish, indicating the market could move back into an uptrend with a target area between $3.67 1n3 $3.80.
Soybean meal: The March contract closed $7.10 higher at $282.60. After posting a new low of $268.30 the March contract saw a strong rally to close out the week, establishing what looks to be a spike reversal on its weekly chart. If so, the secondary (intermediate-term) trend would now be considered up. A confirmation of this reading would be a move to a new 4-week high above $293.40. Weekly stochastics continue to grow more bullish following the crossover below the oversold level of 20% the week of November 23.
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