Live Cattle: The February contract closed $5.325 lower at $127.55. The minor (short-term) downtrend strengthened last week leading to a test of support at $127.275. This price marks the 67% retracement level of the previous uptrend $121.975 through the high of $137.875. Daily stochastics are approaching the oversold level of 20%. The secondary (intermediate-term) trend remains sideways as the contract tests support. Noncommercial traders continue to liquidate their net-long futures position, with Friday's report showing a reduction of 1,683 contracts.
Feeder Cattle: The March contract closed $7.05 lower at $150.275. The minor (short-term) trend strengthened last week with the futures contract testing support near $150.10. This price marks the 67% retracement level of the previous uptrend from $141.70 through the high of $166.875. Daily stochastics are nearing the oversold level of 20%. The secondary (intermediate-term) trend remains sideways.
Lean hogs: The February contract closed $2.175 higher at $62.025 last week. The secondary (intermediate-term) trend remains sideways. However, the minor (short-term) uptrend looks to be nearing an end with daily stochastics above the overbought level of 80% as the futures contract tests technical resistance near $62.225. Last week's high was $62.675.
Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.40 1/4, up 6 3/4 cents for the week. The secondary (intermediate-term) trend is sideways, with support between $3.29 and $3.23. Resistance is at the high near $3.56 3/5 (week of November 30). Weekly stochastics remain neutral near the oversold level of 20%.
Soybean meal: The March contract closed $2.00 higher at $270.70. The secondary (intermediate-term) trend turned sideways between the 4-week low of $263.80 and the 4-week high of $284.50. Weekly stochastics established a bullish crossover below the oversold level of 20%, indicating a possible move to an uptrend. Despite pressure seen late last week the minor (short-term) trend remains up.
The weekly Commitments of Traders report showed positions held as of Tuesday, January 12.
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