Technically Speaking

Weekly Analysis: Livestock Markets

Source: DTN ProphetX

Live Cattle: The June contract closed $1.975 lower at $110.875. The June contract continues to indicate its secondary (intermediate-term) trend is turning down after failing to take out the previous high of $114.65. If so initial support is pegged near $106.575, a price that marks the 33% retracement level of the previous uptrend from $91.30 through the recent high of $114.20.

Feeder Cattle: The May contract closed $1.10 lower at $132.70. May feeders look to be moving into a secondary (intermediate-term) downtrend following last week's lower close. If so, initial support is near $129.70, a price that marks the 23.6% retracement level of the previous uptrend from $108.65 through the recent high of $136.225. The 38.2% retracement level is down near $125.70.

Lean Hogs: The June contract closed $1.90 lower at $73.85 last week. The secondary (intermediate-term) trend remains down with initial support at 73.375. This price marks the 50% retracement level of the previous uptrend from $66.40 through the high of $80.35. With weekly stochastics still above the oversold level of 20% the contract could target the 67% retracement level near $71.05.

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.26 1/2, up 9 1/2 cents for the week. Despite the higher weekly close the NCI.X remains in a secondary (intermediate-term) downtrend. However, it has rallied off its initial test of support at $3.18 1/4, a price that marks the 38.2% retracement level of the previous uptrend from $2.85 1/4 through the high of $3.38 1/2. Still, weekly stochastics are bearish indicating the NCI.X could ultimately test the 50% retracement level of $3.12 or possibly the 61.8% retracement level of $3.05 1/2.

Soybean meal: The May contract closed $9.80 lower at $308.40. The contract remains in a secondary (intermediate-term) downtrend, posting a new 4-week low of $307.20. Next support is the previous low of $299.70.

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