Technically Speaking

Weekly Analysis: Livestock Markets

Live Cattle: The June contract closed $0.20 higher at $149.00 last week. Technical indicators remain mixed, with weekly stochastics showing a continued secondary (intermediate-term) uptrend while the previous week's activity established a bearish key reversal. This could lead to a consolidation phase between resistance at $158.825 and support at $146.175.

P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]

Feeder Cattle: The August contract closed $1.25 lower at $210.20 last week. Similar to live cattle, August feeders show conflicting technical signals. The previous week saw the August contract post a bearish key reversal after testing resistance near $222.20. However, the last signal by weekly stochastics was a bullish crossover below the oversold level of 20%. August feeders could look to test support near $206 in the coming weeks.

Lean hogs: The June contract closed $1.875 lower at $76.275 last week. June hogs posted a bearish reversal last week, indicating the contract could now test its recent low of $72.05. Weekly stochastics are neutral below the oversold level of 20%.

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.61, up 4 cents for the week. The trend of the market remains sideways with the last secondary (intermediate-term) signal by weekly stochastics a bearish crossover above the oversold level of 80% level the week of December 29, 2014. Support remains at $3.47, the 33% retracement level of the previous secondary uptrend from $2.81 through the December 2014 high of $3.80. Resistance is near $3.84.

Soybean meal: The May contract closed $5.80 higher at $315.00 last week. The market remains in a secondary (intermediate-term) downtrend with last week's move to a new low of $307.30 before rallying back above support at $314.30. Monthly stochastics are below the oversold level of 20% meaning the contract could soon see a bullish turn.

To track my thoughts on the markets throughout the day, follow me on Twitter: www.twitter.com\DarinNewsom

P[] D[728x170] M[320x75] OOP[F] ADUNIT[] T[]
P[L2] D[728x90] M[320x50] OOP[F] ADUNIT[] T[]

Comments

To comment, please Log In or Join our Community .