Technically Speaking

Weekly Analysis: Livestock Markets

Source: DTN ProphetX

Live Cattle: The February contract closed $1.225 lower at $114.825. The market's secondary (intermediate-term) has turned down. As discussed in this space last week, Feb cattle followed up its doji with a lower close establishing a bearish crossover by weekly stochastics above the overbought level of 80%. Initial support is near $111.90, a price that marks the 33% retracement level of the previous uptrend from $97.80 through the recent high of $118.50. The 50% retracement level is down at $108.375.

Feeder Cattle: The March contract closed $1.30 lower at $123.80. Similar to live cattle, March feeders rolled over into a secondary (intermediate-term) downtrend. The contract followed up the previous week's bearish reversal by trading lower last week, establishing a bearish crossover above 80% by stochastics. Initial support is near $121.70, a price that marks the 33% retracement level of the previous uptrend from $109.075 through the recent high of $127.90. The 50% retracement level is down near $118.50.

Lean hogs: The February contract closed $2.175 lower at $63.975 last week. The secondary (intermediate-term) uptrend looks to be nearing its end as the contract sits above resistance near $64.80. This price marks the 76.4% retracement level of the previous downtrend from $70.125 through the low of $47.525. The lower weekly close has stochastics in position to establish a bearish crossover above the overbought level of 80%.

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.22 3/4, up 7 1/2 cents for the week. The secondary (intermediate-term) remains up as the NCI.X tests initial resistance near $3.23 1/2. This price marks the 33% retracement level of the previous secondary downtrend from $4.00 1/2 through the low of $2.85 1/4. The 38.2% level is up at $3.29 1/4. Weekly stochastics have climbed above the overbought level of 80%, meaning buying interest in cash corn could start to slow.

Soybean meal: The March contract closed $5.30 lower at $311.30. March soybean meal remains in a secondary (intermediate-term) sideways trend between resistance at $332.80 and support at $309.80. Weekly stochastics remain neutral with the last secondary signal being a bullish crossover the week of October 10.

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