Technically Speaking

Monthly Analysis: Livestock Markets

Live Cattle: The June contract closed at $149.70, down $2.625 on the monthly chart. The major (long-term) trend remains down with support between $141.85 and $137.30. These prices mark the 33% and 38.2% retracement levels of previous uptrend from $79.975 through the high of $172.75. Secondary resistance is pegged at $155.65, the 38.2% retracement level of the initial sell-off from the $172.75 high through the March 2015 low of $145.075.

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Feeder Cattle: The August contract closed at $21.70, down $2.20 on the monthly chart. While the major (long-term) trend remains down, the market has seen a retracement rally leading to test of resistance at $219.375. This price marks the 50% level of the initial sell-off from $245.75 through the low near $192.375. The latter marks the 33% retracement level of the previous uptrend from $85.50 through the $245.75 high.

Lean Hogs: The June contract closed at $81.425, up $5.625 on the monthly chart. The major (long-term) trend remains up with resistance pegged between $83.00 and $86.725, prices that mark the 33% and 38.2% retracement levels of the previous major downtrend from $133.425 (March 2014 high) to $57.85 (March 2015 low).

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.45, down 10 cents for the month. The major (long-term) trend remains up while the secondary (intermediate-term) trend is sideways to down. Support remains at $3.31, a price that marks the 50% retracement level of the rally from $2.81 (October 2014 low) to $3.80 (December 2014 high).

Soybean meal: The July contract closed at $316.10, down $10.70 on the continuous monthly chart. The major (long-term) trend remains down with support pegged at the previous low of $295.10 (October 2014). The market's forward curve remains inverted reflecting a bullish commercial outlook.

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