Technically Speaking

Weekly Analysis: Livestock Markets

Live Cattle: The August contract closed $0.125 lower at $150.675. The secondary (intermediate-term) trend remains down with resistance near $152.25, a price that marks the 67% retracement level of the previous downtrend from $159.40 through the low of $137.975. Weekly stochastics are bearish following a crossover above the overbought level of 80% the week of June 1. Initial support is at $148.125, the 38.2% retracement level of the previous secondary uptrend from $137.975 through the recent high of $154.40.

Feeder Cattle: The August contract closed $0.025 lower at $223.425 last week. While the minor (short-term) trend could see the contract trend sideways, holding between resistance levels of $222.175 and $224.325, indications are that the secondary (intermediate-term) and major (long-term) trends are down. Secondary support is near $217.45, a price that marks the 33% retracement level of the previous uptrend from $196.675 through the high of $227.80. The 4-week low is at $218.375.

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Lean hogs: The August contract closed $2.90 lower at $73.825 last week. August lean hogs tested their contract low of $73.55 last week, posting a low of $73.65. However, weekly stochastics remain bearish indicating the contract could move to a test of major (long-term) support between $71.575 and $67.00, prices that mark the 50% and 67% retracement levels of the previous major uptrend from $57.85 through the high of $85.325.

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.34, unchanged for the week. Cash corn remains in a secondary (intermediate-term) sideways trend. Resistance is at $3.47, a price that marks the 33% retracement level of the previous downtrend from $3.80 through the recent low of $3.31. Support is at $3.31, the 50% retracement level of the uptrend from $2.81 through the high of $3.80. Weekly stochastics are neutral below the oversold level of 20%.

Soybean meal: The July contract closed $5.70 higher at $323.10. The secondary (intermediate-term) trend remains up. The contract continues to hold below resistance at $332.70, a price that marks the 33% retracement level of the previous downtrend from $409.30 through the low of $294.40. Support continues to come from noncommercial buying, with Friday's CFTC Commitments of Traders report showing this group increasing their net-long futures holdings by 13,381 contracts. Also, the July contract is in the process of establishing a bullish key reversal on the monthly (long-term) chart.

The weekly Commitments of Traders report showed positions held as of Tuesday, June 16.

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