Live Cattle: The June contract closed $0.925 higher at $111.80. While the secondary (intermediate-term) trend still looks to be down, last week's action established a bullish outside range on June cattle's weekly chart. This would suggest that the contract could look to retest its high of $114.65 before turning down again. Weekly stochastics remain bearish, with the last secondary signal a crossover above the overbought level of 80% the week of January 23.
Feeder Cattle: The May contract closed $1.175 higher at $133.875. The secondary (intermediate-term) trend still looks to be down with the most recent signal by weekly stochastics a bearish crossover above 80% the week of January 23. However, like June live cattle, May feeders posted a bullish outside range last week suggesting follow-through buying to test its recent high of $136.225.
Lean Hogs: The June contract closed $1.075 lower at $72.775 last week. The secondary (intermediate-term) trend remains down with next support near $71.05. This price marks the 67% 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 looks to still have room to the downside.
Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.22 1/2, down 4 cents for the week. The NCI.X remains in a secondary (intermediate-term) downtrend with initial support at $3.18 1/4. This price marks the 38.2% retracement level of the previous uptrend from $2.85 1/4 through the high of $3.38 1/2. 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 $1.00 lower at $307.40. The contract remains in a secondary (intermediate-term) downtrend, posting a new 4-week low of $306.70. Next support is the previous low of $299.70. However, weekly stochastics are below the oversold level of 20% and nearing a bullish crossover, an initial sign that the secondary trend is approaching a change in direction.
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