Technically Speaking

Live Cattle: The February contract closed at $169.225, up $3.175 for the month. The major (long-term) trend remains up as the February contract established a new high of $172.75 in November. Monthly stochastics are near the 90% level, continuing to indicate the same overbought situation that has been in place for months. While the February to April futures spread continues to reflect a bullish commercial outlook, this spread did weaken during November.

Feeder Cattle: The January contract closed at $231.075, up $0.575 for the month. The January contract consolidated during November, keeping alive the bearish crossover by monthly stochastics at the end of October. This would continue to indicate that the major (long-term) trend has turned down. However, monthly stochastics have posted similar crossovers before without establishing a downtrend. Initial support is at the October low of $230.10.

Lean Hogs: The February contract closed at $88.225, up $0.20 for the month. The major (long-term) trend is down, building on the bearish reversal seen at the end of July 2014. With monthly stochastics nearing the oversold level of 20% the market could look to test its October low of $86.15. Beyond that is support at the January 2014 low of $84.50.

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.48, up 12 cents for the month. The trend of the market has turned up, putting the long-term price target near $4.90. This price marks the 38.2% retracement level of the previous downtrend from $8.26 (August 2012) through $2.81 (October 2014). Initial resistance could be found near the 23.6% retracement level of $4.10. Monthly stochastics are growing mover bullish after the bullish crossover below the oversold level of 20% established at the end of October.

Soybean meal: The January contract closed at $366.30, down $22.70 for the month. The major (long-term) trend remains up following the establishment of a bullish key reversal during October 2014. However, the market ran into initial resistance near $418.40, a price that marks the 50% retracement level of the previous downtrend from $541.80 (September 2012 high) through the October low of $295.10. Monthly stochastics could look to move back below the oversold level of 20%, meaning the market could test support between $356.40 and $335.90.

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