Technically Speaking

Live Cattle: The October contract closed at $145.925, down $2.15 on the monthly chart. The major (long-term) trend remains down with support between $141.95 and $137.40. These prices mark the 33% and 38.2% retracement levels of previous uptrend from $79.975 (March 2009 low) through $172.75 (November 2014 high). Monthly stochastics remain bearish meaning additional noncommercial long-liquidation could be seen. However, the final CFTC Commitments of Traders report for July showed this group holding a net-long futures position of only 19,794 contracts, possibly limiting the sell-off to the 38.2% retracement level.

Feeder Cattle: The August contract closed at $210.725, down $4.00 on the monthly chart. The major (long-term) trend remains down with initial support near $192.375, a price that marks the 33% retracement level of the previous uptrend from $85.50 (December 2008 low) through $245.75 (October 2014 high). Monthly stochastics are bearish and still well above the oversold level of 20%. This would indicate the market could see increased selling interest over the coming months.

Lean Hogs: The October contract closed at $63.725, down $10.65 on the monthly chart. The market remains in a major (long-term) 5-wave uptrend pattern with the sell-off looking to be nothing more than a Wave 2 pullback. The October contract did close the month below support near $64.35, a price that marks the 76.4% retracement level of Wave 1 from $57.85 (March 2015) to $85.325 (May 2015), setting up a potential test of its previous low. Monthly stochastics are back below the oversold level of 20% and could establish a secondary (confirming) bullish crossover in the coming months.

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.43, down 47 cents for the month. Despite the sharp sell-off in July the market remains in a major (long-term) 5-wave uptrend pattern. It could be important, but not critical, for the NCI.X to hold above its June low $3.29. Monthly stochastics are still bullish indicating long-term momentum is to the upside.

Soybean meal: The most active December contract closed at $323.90, down $21.50 on the continuous monthly chart. The monthly soybean meal chart (most active contract) continues to show a complex series of patterns. However, given that June saw a bullish key reversal established in conjunction with a bullish crossover by monthly stochastics below the oversold level of 20% the major (long-term) trend would be classified as up. Confirmation of Wave 3 (of a 5-wave uptrend) won't occur until the most active contract moves above the Wave 1 high of $417.60. This is also a test of resistance at $418.40, the 50% retracement level of the previous major downtrend from $541.80 through the low of $295.10. Support is pegged between $327.00 and $316.70, the 50% and 67% retracement levels of the rally from $295.30 (June 2015 low) to $357.70 (July 2015 high).

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