Technically Speaking

Weekly Analysis: Livestock Markets

Source: DTN ProphetX

Live Cattle: The June contract closed $2.90 higher at $114.70. The secondary (intermediate-term) trend turned up again, influenced by the market's major (long-term) uptrend. Next major resistance on the monthly chart is at the February high of $127.125, then near $133.15. The latter marks the 50% retracement level of the previous major downtrend from $171.975 through the low of $94.30. Monthly stochastics remain bullish and well below the overbought level of 80%.

Feeder Cattle: The August contract closed $4.625 higher at $140.275. The secondary (intermediate-term) trend turned up again, influenced by the market's major (long-term) uptrend. Next major resistance on the monthly chart is near $145.60, a price that marks the 23.6% retracement level of the previous major downtrend from $245.75 through the low of $114.65. Monthly stochastics remain bullish and well below the overbought level of 80%. The 38.2% retracement level is near $164.725.

Lean Hogs: The June contract closed $0.275 lower at $72.500 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 $3.35, up 12 1/2 cents for the week. While the NCI.X remains in a secondary (intermediate-term) downtrend, it posted an impressive rally last week. Resistance is at the previous high of $3.38 1/2, while support is down at $3.18 1/4. The market's major (long-term) trend remains up with resistance at $3.39 1/2.

Soybean meal: The July contract closed $10.40 higher at $321.80. July soybean meal posted a bullish reversal on its weekly chart last week, signaling the contract has moved back into a secondary (intermediate-term) uptrend. Weekly stochastics remain below the oversold level of 20%, but did not establish a bullish crossover despite the strong rally in the futures market.

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