Live Cattle: The October contract closed $2.80 higher at $104.40. Technically the secondary (intermediate-term) trend remains down. However, last week's move to a new low of $99.375 followed by a rally to a higher close could be indicating a bullish spike reversal. Support is now at last week's low with initial resistance at the 4-week high of $115.425.
Feeder Cattle: The October contract closed $0.80 lower at $131.275. The October contract posted another new major (long-term) low $126.975 last week. However, the contract was also able to erase most of last week's sell-off by Friday's close. While this could be a possible bullish spike reversal, technical signals continue to indicate the secondary (intermediate-term) trend is down.
Lean hogs: The October contract closed $1.525 lower at $59.225 last week. The secondary (intermediate-term) trend is sideways with support at the contract low of $57.575. Weekly stochastics remain below the oversold level of 20%, in position to establish a confirming bullish crossover in the coming weeks. The initial bullish crossover occurred the week of August 15.
Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.00 1/2, up 12 3/4 cents for the week. The secondary (intermediate-term) uptrend continues to strengthen. However, the NCI.X is testing initial resistance at $3.03, a price that marks the 23.6% retracement level of the previous downtrend from $4.00 1/2 through the low of $2.73. The 4-week high is just above that at $3.03 3/4. Given the market's bullish momentum it should be able to extend its rally to the 38.2% retracement level of $3.21 3/4.
Soybean meal: The December contract closed $9.10 higher at $316.50. The market looks to have established a bullish 2-week reversal. The previous week saw Dec meal test support at $303.70 before closing near its weekly low of $304.80. Last week the market rallied, closing near its weekly high of $319.30. The initial upside target is $347.80, the 38.2% retracement level of the previous downtrend from the high of $418.70.
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