Technically Speaking

Weekly Analysis: Livestock Markets

Source: DTN ProphetX

Live Cattle: The more active December contract closed $2.175 lower at $115.25. While the contract's secondary (intermediate-term) trend still looks to be up, the minor (short-term) trend on its daily chart has turned down. Upward consolidation at the end of the week established a bearish flag. With the contract testing retracement resistance between $114.85 and $115.95, minor trendline support Monday is calculated at $114.80. A break of this price would indicate the bear flag formation has been completed and the second-half of the flagpole has begun, with a target near the 61.8% retracement level of $100.925.

Feeder Cattle: The more active November contract closed 3.625 lower at $154.00. Similar to live cattle, most of the interest in feeders is on the daily chart and its minor (short-term) trend. Friday's close saw the contract conclude a bear flag consolidation pattern, with the break of trendline support putting the downside target near $148.575. This price marks the 50% retracement level of the previous minor uptrend from $139.125 through the high of $158.025.

Lean Hogs: The more active December contract closed $3.325 higher at $59.95 last week. The contract is showing a good deal of volatility, following up the previous week's bearish outside range with last week's bullish outside range. Though weekly stochastics did not establish a bullish crossover below the oversold level of 20%, the Dec contract did post a new 4-week high of $61.175. This would indicate the contract hs moved into a secondary (intermediate-term) uptrend.

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.10, up 1 1/2 cents for the week. The NCI.X remains in a secondary (intermediate-term) uptrend on its weekly close-only chart. Initial resistance is at $3.13, a price that marks the 23.6% retracement level of the previous downtrend from $3.48 (week of June 5) through the low of $3.02 (week of August 21). The 38.2% retracement level is up at $3.19 3/4.

Soybean meal: The more active December contract closed $3.20 lower at $315.80. Despite a lower weekly close the contract remains in a secondary (intermediate-term) uptrend.

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