Technically Speaking

Weekly Analysis: Livestock Markets

Live Cattle: The December contract closed $2.10 higher at $139.425. December live cattle extended the rally off this month's low of $128.10, a test of major (long-term) support near $126.50. The latter price marks the 50% retracement level of the previous major uptrend from $80.225 through the high of $172.75. While weekly stochastics are bullish, noncommercial traders continue to add to their net-short futures position. This could result in a round of short-covering that could result in a bullish crossover by monthly stochastics. Major resistance is between $138.575 and $145.20.

Feeder Cattle: The November contract closed $5.275 higher at $190.15 last week. The secondary (intermediate-term) trend looks to is up with weekly stochastics bullish. However, the contract is testing resistance between $186.55 and $195.30, prices that mark the 33% and 50% retracement levels of the previous secondary downtrend from $221.50 through the recent low of $169.10. This recent low was a test of major support at $165.60, the 50% retracement level of the previous long-term uptrend from $85.45 through the high of $245.75.

Lean hogs: The December contract closed $0.55 lower at $65.575 last week. Despite the lower weekly close the secondary (intermediate-term) trend is up as noncommercial traders continue to add to their net-long future position. Friday's CFTC Commitments of Traders report showed this group adding 3,991 contracts, putting the position at 24,085. The contract did set a new 4-week high of $68.375 before selling off.

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.44, down 5 cents for the week. The secondary (intermediate-term) trend remains sideways with major (long-term) support at $3.44, a price that marks the 50% retracement level of the previous rally from $2.81 (low from October 2014) through $4.06 (high from July 2015). Weekly stochastics are neutral-to-bearish above the oversold level of 20%.

Soybean meal: The December contract closed $4.20 higher at $312.00. The secondary (intermediate-term) trend remains sideways with the contract consolidating above technical support at $302.90. This price marks the 76.4% retracement level of the previous rally from $286.00 through the high of $357.70. Resistance is at the high of $320.50 (week of August 23). Weekly stochastics are neutral-to-bullish below the oversold level of 20%.

The weekly Commitments of Traders report showed positions held as of Tuesday, October 13.

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