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 $2.175 higher at $107.325. October live cattle moved into a transitionary sideways trend ahead of a turn to a secondary (intermediate-term) uptrend. Support at $103.625, a price that marks the 61.8% retracement level of the previous uptrend from $91.75 through the high of $122.85, has held. A new uptrend would be indicated by a move beyond the 4-week high of $109.75.

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Feeder Cattle: The October contract closed $4.875 higher at $148.425 Despite still bearish weekly stochastics, October feeders are in position to turn the secondary (intermediate-term) trend up. A move to a new 4-week high beyond $149.125, last week's high, would signal a change in trend without stochastics crossing over below the oversold level of 20%.

Lean Hogs: The October contract closed $0.70 higher at $62.15 last week. The market remains in a secondary (intermediate-term) downtrend with support near $60.875. This price marks the 76.4% retracement level of the previous uptrend from $57.35 through the high of $72.25. Weekly stochastics remain bearish, 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 $3.11 1/2, up 3 1/2 cents for the week. The NCI.X remains in a secondary (intermediate-term) uptrend on its weekly close-only chart. Initial resistance is at $3.13, a price that marks the 23.6% retracement level of the previous downtrend from $3.48 (week of June 5) through the low of $4.02 (week of August 21). Next resistance is between the 38.2% and 50% retracement levels of $3.19 3/4 and $3.25.

Soybean meal: The more active December contract closed $6.40 higher at $305.20. The market looks to be in a secondary (intermediate-term) sideways trend between support at the recent low of $295.10 and resistance the 4-week high, last week's high, of $310.50. A move above this level would signal a move to a secondary uptrend that would then be confirmed by a bullish crossover below the oversold level of 20% by weekly stochastics.

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