Technically Speaking

Weekly Analysis: Livestock Markets

Live Cattle: The December contract closed $0.975 lower at $129.70. After posting another new low of $125.50 the contract was able to trim its loss to less than $1.00 at the close of the week. This could indicate that the minor (short-term) trend has turned up leading to continues support over the next couple of weeks. The major (long-term) trend remains down, though Dec cattle continue to hold above support near $126.50 as monthly stochastics move toward a bullish crossover below the oversold level of 20%.

Feeder Cattle: The January contract closed $0.90 lower at $13.65. After posting a new low of $158.05 it was able to trim its loss to less than $1.00 at the week's settlement. This would indicate the minor (short-term) trend has turned up meaning the contract could see a rally over the coming weeks. Jan feeder cattle have also climbed back above major (long-term) support at $165.60 though monthly stochastics remain bearish below the oversold level of 20%.

Lean hogs: The December contract closed $2.65 higher at $57.45 last week. The contract posted a bullish reversal on its weekly chart, signaling the secondary (intermediate-term) trend has turned up. A similar pattern was seen on the more heavily traded February contract. The market's monthly chart is showing a potential bullish spike reversal indicating the major (long-term) trend may be turning up as well. Monthly stochastics are nearing a bullish reversal below the oversold level of 20%.

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.44, up 7 cents for the week. Cash corn remains in a sideways trend as it consolidates near support at $3.44. This price marks the 50% retracement level of the rally from $2.81 through the high of $4.06. Weekly stochastics are neutral with the last intermediate-term signal a bullish crossover below the oversold level of 20% the week of June 1, 2015.

Soybean meal: The December contract closed $5.80 lower at $233.00. The secondary (intermediate-term) trend remains down as Dec meal moved to another new low of $282.70. Weekly stochastics are in single digits indicating a sharply oversold situation. Major (long-term) support on the market's monthly chart is at $275.40, a price that marks the low posted during December 2011.

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