Technically Speaking

Weekly Analysis: Livestock Markets

Source: DTN ProphetX

Live Cattle: The October contract closed $1.500 lower at $105.90. October live cattle remain in a secondary (intermediate-term) downtrend. Next support is near $103.625, a price that marks the 61.8% retracement level of the previous uptrend from $91.75 through the high of $122.85. Weekly stochastics are bearish but nearing the oversold level of 20%.

Feeder Cattle: The October contract closed $1.675 lower at $139.925. The contract remains in a secondary (intermediate-term) downtrend with next support pegged at $135.675. This price marks the 50% retracement level of the previous uptrend from $111.525 through the high of $159.825. Weekly stochastics are bearish indicating the contract could look to extend its downtrend to the 61.8% retracement level of $129.975.

Lean Hogs: The October contract closed $2.50 lower at $66.125 last week. The market remains in a secondary (intermediate-term) downtrend. Last week saw the contract post a bearish outside week before closing lower. Support is at $64.80, then near $63.05. These prices mark the 50% and 61.8% retracement levels of the previous uptrend from $57.35 through the high of $72.25.

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.14 1/4, down 6 1/2 cents for the week. The NCI.X remains in a secondary (intermediate-term) downtrend on its weekly close-only chart. With weekly stochastics dipping below the oversold level of 20% the NCI.X could find support near $3.09 1/4, a price that marks the 61.8% retracement level of the previous uptrend from $2.85 1/4 through the double-top near $3.48.

Soybean meal: The more active December contract closed $3.70 lower at $300.50. The market looks to be in a secondary (intermediate-term) sideways trend between support at the recent low of $295.40 and resistance the recent high of $348.70. Weekly stochastics are neutral-to-bearish.

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