Technically Speaking

Weekly Analysis: Livestock Markets

Source: DTN ProphetX

Live Cattle: The October contract closed $3.50 lower at $140.475. The secondary (intermediate-term) trend remains down with major (long-term) support between $141.95 and $137.40. These prices mark the 33% and 38.2% retracement levels of the previous major uptrend from $80.225 through the high of $172.75. Both weekly and monthly stochastics remain bearish indicating the contract could retest this support before establish a secondary uptrend and bringing the ongoing major downtrend to an end.

Feeder Cattle: The October contract closed $3.225 lower at $195.70 last week. The secondary (intermediate-term) trend remains down with major (long-term) support between $192.375 and $184.50. These prices mark the 33% and 38.2% retracement levels of the previous major uptrend from $85.45 through the high of $245.75. Both weekly and monthly stochastics remain bearish.

Lean hogs: The October contract closed $2.725 higher at $69.15 last week. The secondary (intermediate-term) trend remains up with initial resistance pegged near $70.70. This price marks the 33% retracement level from the contract high of $93.25 through the contract low of $59.45. Weekly stochastics are bullish, indicating a possible extension of the uptrend to the 50% retracement level of $76.35.

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.30, down 11 cents for the week. The secondary (intermediate-term) trend remains sideways-to-down with the NCI.X moving toward a test of major (long-term) support at $3.23. This price marks the 67% retracement level of the rally from the October 2014 low of $2.81 through the July 2015 high of $4.06. Weekly stochastics remain bearish below the oversold level of 20%.

Soybean meal: The more active December contract closed $5.90 lower at $306.80. The secondary (intermediate-term) trend remains sideways-to-down with support pegged at $302.90. This price marks the 76.4% retracement level of the rally from $286.00 through the high of $357.70. Pressure continues to come from both commercial and noncommercial interests with the latter reflected in Friday's weekly CFTC Commitments of Traders report that showed this group reducing their net-long holdings by 10,239 contracts.

The weekly Commitments of Traders report showed positions held as of Tuesday, September 1.

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