Technically Speaking

Monthly Analysis: Livestock Markets

Source: DTN ProphetX

Live Cattle: The December contract closed at $130.925, down $12.275 on the monthly chart. The major (long-term) trend remains down with support near $126.50. This price marks the 50% retracement level of previous uptrend from $79.975 (March 2009 low) through $172.75 (November 2014 high). Monthly stochastics remain bearish but nearing the oversold level of 20%.

Feeder Cattle: The November contract closed at $172.60, down $25.275 on the monthly chart. The major (long-term) trend remains down with support at $165.60. This price marks the 50% retracement level of the previous uptrend from $85.50 (December 2008 low) through $245.75 (October 2014 high). Monthly stochastics are bearish and nearing the oversold level of 20%.

Lean Hogs: The December contract closed at $66.725, down $1.30 on the monthly chart. Despite the lower monthly close the market remains in a major (long-term) 5-wave uptrend pattern with Wave 2 appearing to have ended in August. Monthly stochastics are neutral below the oversold level of 20% and could establish a confirming bullish crossover in the coming months. The initial bullish crossover occurred at the end of March 2015.

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.53, up 13 cents for the month. The NCI.X remains in a major (long-term) 5-wave uptrend pattern, holding support between $3.44 and $3.23 during September. These prices mark the 50% and 67% retracement levels of the rally from $2.81 (October 2014) through $4.06 (July 2015). Monthly stochastics remain bullish.

Soybean meal: The December contract closed at $309.00, down $2.30 on the continuous monthly chart. The major (long-term) trend looks to be sideways with support at the double-bottom low of $295.10 (October 2014) and $296.30. Both those months saw bullish reversals, with the one from October 2014 registering a as a bullish key reversal. Still, the market has been unable to generate momentum with monthly stochastics holding below the oversold level of 20%.

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