Technically Speaking

Weekly Analysis: Livestock Markets

Source: DTN ProphetX

Live Cattle: The August contract closed $0.725 lower at $121.05. The contract remains in a secondary (intermediate-term) downtrend, testing initial support at $118.62. This price marks the 23.6% retracement level of the previous uptrend from $89.875 through the high of $127.50. With weekly stochastics bearish and the contract's minor (short-term) trend also down on its daily chart, August live cattle should soon test next support at the 38.2% retracement level near $113.15.

Feeder Cattle: The August contract closed $1.375 lower at $150.45. The contract remains in a secondary (intermediate-term) downtrend, testing initial support at $150.85. This price marks the 23.6% retracement level of the previous uptrend from $109.90 through the high of $163.50. With weekly stochastics bearish and the contract's minor (short-term) trend also down on its daily chart, August feeder cattle should soon test next support at the 38.2% retracement level of $143.025.

Lean Hogs: The August contract closed $1.325 higher at $79.225 last week. Despite the contract's ongoing strong rally, its secondary (intermediate-term) trends still looks to be down. This is based on the bearish reversal posted on its weekly chart in late February after posting a high of $79.65. This coincided with a bearish crossover by weekly stochastics above the overbought 80% level. The contract's minor (short-term) uptrend has daily stochastics showing a sharply overbought market that could lead to renewed selling interest. However, watch for a break of resistance at the February high.

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.35 1/4, up 3 cents for the week. Cash corn is a mix of chart signals dominated by sideways trends on its major (long-term) monthly, secondary (intermediate-term) weekly, and minor (short-term) daily charts.

Soybean meal: The July contract closed $6.30 lower at $307.00. The move below its previous low of $309.60 reestablished a secondary (intermediate-term) downtrend for July bean meal. This put the contract in position to test major (long-term) support on the market's monthly chart at $299.90.

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