Technically Speaking

Weekly Analysis: Livestock Markets

Darin Newsom
By  Darin Newsom , DTN Senior Analyst
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Source: DTN ProphetX

Live Cattle: The October contract closed $1.775 lower at $105.15. October live cattle remain in a secondary (intermediate-term) downtrend, though testing support near $103.625. This price marks the 61.8% retracement level of the previous uptrend from $91.75 through the high of $122.85. Weekly stochastics have moved below the oversold level of 20%, indicating a change in momentum could soon be seen.

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Feeder Cattle: The October contract closed $0.600 higher at $143.55. Despite the higher weekly close 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 above the oversold level of 20%.

Lean Hogs: The October contract closed $1.625 lower at $61.450 last week. The market remains in a secondary (intermediate-term) downtrend. However, after falling below support near $60.875, a price that marks the 76.4% retracement level of the previous uptrend from $57.35 through the high of $72.25, the contract was able to close back above this support. Weekly stochastics remain bearish, but above the oversold level of 20% meaning the contract could continue to see light selling interest.

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.08, up 5 3/4 cents for the week. The NCI.X looks to have established a secondary (intermediate-term) uptrend on its weekly close-only chart. Cash corn was able to rally off its test of support at $3.00, a price that marks the 76.4% retracement level of the previous uptrend from $2.85 1/4 through the high weekly close of $3.48. Meanwhile, weekly stochastics posted a bullish crossover below the oversold level of 20%, indicating a bullish change in momentum should be seen.

Soybean meal: The more active December contract closed $1.20 lower at $298.80. The market looks to be in a secondary (intermediate-term) sideways trend between support at the recent low of $295.10 and resistance the recent high of $303.30. Weekly stochastics are neutral-to-bearish.

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