Technically Speaking

Weekly Analysis: Livestock Markets

Live Cattle: The June contract closed $2.500 higher at $152.975 last week. The secondary (intermediate-term) trend remains up with next resistance AT 154.825, the 67% retracement level of the previous secondary downtrend from $162.925 through the low of $138.60. Support continues to come from strong commercial buying, as indicated by the April to June futures spread.

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Feeder Cattle: The May contract closed $2.725 higher at $218.125 last week. The secondary (intermediate-term) trend remains up. The contract has moved above resistance near $215.10, a price that marks the 50% retracement level of the previous downtrend from $236.325 through the recent low of $193.90, and could now target the 67% retracement level near $222.20.

Lean hogs: The June contract closed $1.15 higher at $75.00 last week. Despite the higher close the secondary (intermediate-term) trend remains down. Stochastics continue to indicate an oversold situation, setting the stage for a possible bullish crossover in coming weeks.

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.70, up $0.06 for the week. The NCI.X posted a bullish gap while establishing a new 4-week high of $3.74. This would seemingly indicate the market has moved back into a secondary (intermediate-term) uptrend with an initial target near $3.84. This price marks the 50% retracement level of the previous secondary downtrend from $4.86 through the low of $2.81.

Soybean meal: The May contract closed $2.60 lower at $321.40 last week. The secondary (intermediate-term) trend remains sideways. Resistance is at the recent high of $351.70, a test of the 50% retracement level ($351.00) of the previous downtrend from $409.60 through the low of $292.30. Support is at $314.30, the 67% retracement level of its rally from $292.30 through the high of $358.50.

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