Technically Speaking

Weekly Analysis: Livestock Markets

Source: DTN ProphetX

Live Cattle: The June contract closed $5.55 lower at $106.20. June live cattle remain in a 3-wave secondary (intermediate-term) downtrend, with last week's sell-off resulting in a test of support near $105.975. This price marks the 61.8% retracement level of the previous uptrend from $96.40 through the high of $121.45. With weekly stochastics still above the oversold level of 20%, June cattle could look at testing the 76.4% retracement level near $102.30.

Feeder Cattle: The May contract closed $3.65 lower at $137.30. May feeders remain in a secondary (intermediate-term) 3-wave downtrend. Weekly stochastics are bearish but still above the oversold level of 20%, indicating the contract still has momentum to move lower.

Lean Hogs: The June contract closed $4.975 lower at $74.15. June lean hogs extended its secondary (intermediate-term) downtrend to a new contract low of $73.225 last week. Weekly stochastics remain below the oversold level of 20%.

Corn (Cash): The DTN National Corn Index (NCI, national average cash price) closed at $3.40 1/4, down 4 1/2 cents for the week. The NCI remains in a secondary (intermediate-term) downtrend on its weekly close-only chart. Initial support is at $3.33 1/4, a price that marks the 38.2% retracement level of the previous uptrend from $3.00 1/2 through the high of $3.53 1/4. Weekly stochastics are bearish above the overbought level of 80%, meaning bearish momentum could take the NCI to a deeper retracement.

Soybean meal: The May contract closed $5.00 higher at $377.90. May meal posted what looks to be a spike reversal last week, moving to a new 4-week low of $358 before rallying to a higher weekly close. This sets the stage for a potential test of the previous high of $404, or at least a solid retracement of the recent sell-off. Weekly stochastics are bearish below the overbought level of 80%.

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 .