Technically Speaking

Weekly Analysis: Livestock Markets

Source: DTN ProphetX

Live Cattle: The December contract closed $1.675 lower at $141.725. Dec live cattle posted a bearish outside range last week, indicating the market could see at least a minor (short-term) downtrend emerge. Last week's high of $144.725 was a test of resistance at $142.625, a price that marks the 50% retracement level of the previous downtrend from $156.825 through the low of $128.10. Support is pegged between $139.20 and $136.40, the 33% and 50% retracement levels of the rally from the previous low through last week's high.

Feeder Cattle: The more active January contract closed $2.30 lower at $183.20. While the secondary (intermediate-term) trend remains up, January feeders fell back from the previous test of resistance at $189.10. This price marks the 50% retracement level of the previous downtrend from $214.15 through the low of $164.05. Support is pegged between $179.70 and $175.75, the 33% and 50% retracement levels of the recent rally from the $164.05 low through the recent high of $187.50.

Lean hogs: The December contract closed $4.40 lower at $59.20 last week. The secondary (intermediate-term) trend remains down following the previous week's bearish outside range. Support is at the lows of $57.825 and $57.05.

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.55, up 5 cents for the week. The secondary (intermediate-term) trend remains sideways-to-up with the NCI.X needing a move beyond its triple-top near $3.64 to signal a bullish breakout. Weekly stochastics are bullish indicating momentum could continue to build. Retracement resistance is pegged between $3.67 and $3.80, prices that mark the 50% and 67% levels of the previous downtrend from $4.06 through the low of $3.28. National average basis firmed 2 cents again last week, with Friday's NCI.X coming in 30 cents below the close of the December futures contract.

Soybean meal: The December contract closed $0.70 lower at $304.40. Technical indicators show the secondary (intermediate-term) trend is down with December meal posting a new 4-week low of $298.20 and weekly stochastics remains bearish below the oversold level of 20%. However, the contract was able to rally late in the week on renewed commercial buying interest. This could lead to consolidate between the new low and the series of highs near $320.50.

To track my thoughts on the markets throughout the day, follow me on Twitter: www.twitter.com\DarinNewsom

Comments

To comment, please Log In or Join our Community .