Technically Speaking

Weekly Analysis: Livestock Markets

Source: DTN ProphetX

Live Cattle: The October contract closed $0.425 higher at $107.75. Weekly stochastics posted a bullish crossover below the oversold level of 20% last week, signaling the contract's secondary (intermediate-term) uptrend has turned up. Confirmation of this would be a new 4-week high by the October contract above $109.750.

Feeder Cattle: The October contract closed $2.225 higher at $150.65 October feeders could be considered in a secondary (intermediate-term) uptrend after posting a new 4-week high of $150.85 last week. Next resistance on the contract's weekly chart is at the previous high of $159.825 while major (long-term) resistance on the market's monthly chart is near $165.725. The major trend remains up.

Lean Hogs: The October contract closed $1.175 lower at $60.9755 last week. The market remains in a secondary (intermediate-term) downtrend. After spiking below support near $60.875, a price marking the 76.4% retracement level of the previous uptrend from $57.35 through the high of $72.25, October hogs were able to close back above this level. Weekly stochastics were slightly below the oversold level of 20%, indicating the contract could still challenge last week's low of $58.25.

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.09 1/2, down 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 $6.20 higher at $311.40. The contract established a secondary (intermediate-term) uptrend last week as a new 4-week high was part of a bullish outside range.

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