Live Cattle: The June contract closed $2.375 lower at $121.05. June live cattle closed the bullish gap left the week before between $121.00 and $120.95 indicating the secondary trend remains sideways. Resistance remains at $125.25 with support at the contract low of $113.90. Given last week's bearish close it would not be surprising to see the contract work back toward the low end of this wide trading range.
Feeder Cattle: The August contract closed $1.675 higher at $147.925. The secondary (intermediate-term) trend remains sideways in the wide range between the contract low of $138.10 and near $155.40. The latter marks the 33% retracement level of the previous downtrend from $190.00 through the contract low.
Lean hogs: The June contract closed $2.10 lower at $79.85 last week. The secondary (intermediate-term) trend remains down with initial support near $79.40. The contract's weekly chart is showing a clear double-top formation between $83.975 and $83.457, with an interim low of 76.800. The latter was a test of support near $77.10, the 50% retracement level of the previous secondary uptrend. Indications are that the contract could now move through the interim low, putting the target below the contract low of $70.25 at $69.875.
Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.59 1/2, up 3 3/4 for the week. The secondary (intermediate-term) trend is up with the clearest picture of the trend on the weekly close chart. Weekly stochastics remain bullish but nearing the overbought level of 80%. Next resistance on the weekly close chart is $3.65, the 50% retracement level of the previous secondary downtrend from $4.00 through the low of $3.30 1/4.
Soybean meal: The July contract closed $29.70 higher at $392.70. The secondary (intermediate-term) and major (long-term) uptrends continue to strengthen. Next major resistance is pegged at $400.30, a price that marks the 50% retracement level of the previous downtrend from $541.80 through the low of $258.90.
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