Technically Speaking

Weekly Analysis: Livestock Markets

Source: DTN ProphetX

Live Cattle: The April contract closed $3.275 higher at $122.275. Though it hasn't established a clear indication of ending the previous secondary (intermediate-term) downtrend, April live cattle look to be nearing a bullish turn. The contract needs to see a move to a new 4-week high above $125.175 to signal a bullish breakout, despite the fact weekly stochastics did not cross below the oversold level of 20%.

Feeder Cattle: The March contract closed $2.95 higher at $145.60. Similar to live cattle, March feeders are nearing a bullish breakout. Despite weekly stochastics not establishing a bullish crossover below the oversold level of 20%, a move to a new 4-week high beyond $148.55 would signal a secondary (intermediate-term) uptrend.

Lean Hogs: The more active April contract closed $1.175 higher at $75.50. Despite the higher weekly close the contract remains in a secondary (intermediate-term) downtrend. This stems from the previous week's bearish reversal and the recent bearish crossover by weekly stochastics above the overbought level of 80%. Initial support is at the 4-week low of $73.60.

Corn (Cash): The DTN National Corn Index (NCI, national average cash price) closed at $3.20 3/4, up 7 1/4 cents for the week. The NCI resumed its seasonal uptrend last week, pushing through initial resistance at $3.19. This price marks the 38.2% retracement level of the previous downtrend from $3.57 1/4 through the low of $2.95 1/4. The 50% retracement level is up at $3.26 1/4, though weekly stochastics are already above the overbought level of 80%.

Soybean meal: The March contract closed $14.60 higher at $331.60. The contract confirmed a secondary (intermediate-term) uptrend on its weekly chart with last week's move to a new 4-week high of $334.40. Next major (long-term) resistance is at $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 .