Technically Speaking

Monthly Analysis: Livestock Markets

Source: DTN ProphetX

Live Cattle: The October contract closed at $105.40, down $6.55 on the monthly chart. To this point the monthly chart is showing a standard major (long-term) 5-wave uptrend. The secondary (intermediate-term) downtrend has resulted in a test of support near $105.175, a price that marks the 76.4% retracement level of Wave 1 from $96.10 through the high of $134.55. It is possible Wave 2 could see almost a 100% retracement before Wave 3 begins.

Feeder Cattle: The October contract closed at $143.30, down $2.875 on the monthly chart. The market remains in major (long-term) 5-wave uptrend with the secondary (intermediate-term) downtrend looking to be Wave 4. If so support between $136.925 and the Wave 1 high of $131.55 should hold, setting the stage for a Wave 5 that could extend to the targeted price of $180.20. This is the 50% retracement level of the previous 3-wave major downtrend from $245.75 through the low of $114.65.

Lean Hogs: The October contract closed at $61.40, down $4.625 on the monthly chart. The month of July saw the market post both a new 4-month high and 4-month low before closing lower, indicating the major (long-term) trend had turned down. August saw the market continue this trend, testing support between $63.05 and $57.75, prices that mark the 50% and 61.8% retracement levels of the previous uptrend from $40.70 through the July high of $85.375.

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.07 3/4, down 20 cents for the month. The major (long-term) trend remains sideways-to-down. The last three long-term highs have been lower, as have the last two major lows. This would suggest that the August 2016 low of $2.73 is a long-term target.

Soybean meal: The more active December contract closed at $299.50, down $25.90 on the continuous monthly chart. The market looks to be in a major (long-term) sideways trend between support near $290 and resistance at $340. Extended support and resistance levels are the low of $258.90 (February 2016) and $367.00.

To track my thoughts on the markets throughout the day, follow me on Twitter: www.twitter.com\DarinNewsom

Comments

To comment, please Log In or Join our Community .