Technically Speaking

Monthly Analysis: Livestock Markets

Source: DTN ProphetX

Live Cattle: The August contract closed at $103.95, down $2.15 on the monthly chart. The market remains in a wide-ranging sideways trend on its continuous most active monthly chart. The market posted a low of $98.10 during May, a test of the long-term low of $96.10 (October 2016). Initial resistance is at the May high of $108.10.

Feeder Cattle: The August contract closed at $147.40, up $7.225 on the monthly chart. The market remains in a major (long-term) uptrend on its continuous (front-month) chart. April's low of $128.575 was a test of support near $128.95, a price that marks the rally from $118.90 (October 2016 low) through $161.50 (November 2017 high). Note the 2017 high was another test of resistance near $160.575, a price that marks the 33% retracement level of the previous major downtrend from $245.20 (October 2014 high).

Lean Hogs: The August contract closed at $78.05, up $5.35 on the monthly chart (most active). Lean hogs are in a major (long-term) uptrend, posting a new 4-month high of $80.25 during May. Resistance remains near $87.05, a price that marks the 50% retracement level of the previous downtrend from $133.425 (March 2014) through the low of $40.70 (October 2016).

Class III Milk: The July contract closed at $16.38, up $1.20 on the market's monthly chart. The market remains in a wide-ranging major (long-term) sideways trend between $12.20 (May 2016 low) and $18.01 (August 2016 high).

Corn (Cash): The DTN National Corn Index (NCI, national average cash price) closed at $3.61 1/2, down 1 1/2 cents for the month. The NCI remains in a major (long-term) uptrend. However, monthly stochastics are above the overbought level of 20%, putting the market in position for a possible bearish signal over the months ahead.

Soybean meal: The July contract closed at $375.30, down $18.50 on the continuous monthly chart. Technically the market remains in a major (long-term) uptrend on its monthly chart given the July contract posted a new 4-month high of $406.50 during May. However, futures continue to struggle to close above resistance at $400.30, a price that marks the 50% retracement level of the previous downtrend from $541.80 (September 2012) through the low of $258.90 (February 2016).

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