Live Cattle: The December contract closed $4.425 higher at $101.875. Dec live cattle consolidated within the previous week's range of $103.80 and $96.10. Weekly stochastics remain at or below 20%, reflecting a secondary (intermediate-term) oversold situation. This leaves the door open to a possible bullish turn in trend. Market volatility remains high, a factor that could lead to continued noncommercial long-liquidation.
Feeder Cattle: The January contract closed $3.50 higher at $115.50. Jan feeders posted a new 4-week low of $110.65 last week before rallying. Despite the latter weekly stochastics remain bearish below the oversold level of 20%. While both indicate the secondary (intermediate-term) trend remains down. However, the market is also in position to establish a bullish crossover by stochastics if follow-through buying is seen this coming week. If the secondary trend turns up, initial resistance is pegged at $119.975.
Lean hogs: The more active December contract closed $0.375 lower at $41.85 last week. Dec hogs posted a new 4-week low of $40.70 before rallying late. Weekly stochastics remain deep in single digits meaning the market is sharply oversold and nearing a bullish turn.
Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.09 1/2, down 2 cents for the week. Despite the lower weekly close the secondary (intermediate-term) trend remains up. Initial resistance on the weekly close chart is $3.12 1/2, a price that marks the 23.6% retracement level of the previous downtrend from $4.00 1/2 through the low of $2.85 1/4. The 33% retracement level is up near $3.23 1/2.
Soybean meal: The December contract closed $5.90 higher at $306.50. The secondary (intermediate-term) trend now looks to be up. Dec meal can confirm this with a move to a new 4-week high beyond last week's peak of $311.90. Initial resistance is pegged at $323.50, a price that marks the 23.6% retracement level of the previous downtrend from $418.70 through the recent low of $294.10.
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