Technically Speaking

Weekly Analysis: Livestock Markets

Live Cattle: The June contract closed $2.325 higher at $151.50 last week. The secondary (intermediate-term) trend is up, with resistance between $150.75 and $154.825. These prices mark the 50% and 67% retracement levels of the previous downtrend from $162.925 through $129.425. Weekly stochastics are bullish indicating an extension to the high-side of resistance is likely.

Feeder Cattle: The August contract closed $2.55 higher at $217.625 last week. The last clear secondary (intermediate-term) technical signals are bearish, meaning the secondary trend remains down. However the contract could look to test resistance near $222.20, a price that marks the 61.8% retracement level of the initial sell-off from $237.95 through the low of $196.675. This would also test the previous high of $221.45 from the week of April 6 when the contract posted a bearish reversal. Weekly stochastics are nearing the overbought level of 80%.

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Lean hogs: The June contract closed $3.575 higher at $84.825 last week. The secondary (intermediate-term) trend remains up. Next resistance is pegged at $85.85, the 50% retracement level of the previous secondary downtrend from $99.65 through the low of $72.05. Weekly stochastics are bullish indicating the contract should continue to extend its uptrend.

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.45, up 2 cents for the week. The secondary (intermediate-term) trend now looks to be sideways following the establishment of a bullish reversal by the NCI.X. However, weekly stochastics have not completely crossed into oversold territory below 20%. Technical support remains at $3.42, a price that marks the 38.2% retracement level of the previous uptrend from $2.81 through the high of $3.80.

Soybean meal: The July contract closed $1.50 higher at $313.40 last week. The secondary (intermediate-term) trend looks to be sideways as the contract continues to consolidate between trendline support and trendline resistance. Weekly stochastics are below the oversold level of 20% and nearing a bullish crossover. Support continues to come from commercial buying while noncommercial interests put pressure on the market. Friday's weekly CFTC Commitments of Traders report showed the latter reducing their net-long futures position by 2,205 contracts.

The weekly Commitments of Traders report showed positions held as of Tuesday, May 5.

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