Technically Speaking

Weekly Analysis: Livestock Markets

Live Cattle: The August contract closed $2.700 higher at $151.225. Despite the higher weekly close the secondary (intermediate-term) trend of August live cattle remains down. The contract was able to rally off support near $148.125, the 38.2% retracement level of the previous uptrend, to test longer-term resistance near $152.25. Weekly stochastics are still bearish, indicating the contract could eventually work toward support at the 50% retracement level near $146.20.

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Feeder Cattle: The August contract closed $0.200 higher at $217.45 last week. August feeder cattle remain in a secondary (intermediate-term) downtrend. Weekly stochastics are bearish indicating the contract should extend this sell-off to next support near $212.25, a price that marks the 50% retracement level of the previous uptrend from $196.675 through the high of $227.80.

Lean hogs: The August contract closed $3.55 higher at $76.375 last week. August lean hogs posted a strong rally last week, putting the contract in position to test resistance at $79.225. This price marks the 33% retracement level of the previous secondary (intermediate-term) downtrend from $95.35 through the recent low of $71.175. Weekly stochastics remain neutral.

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.94, up 31 cents for the week. Cash corn extended its secondary (intermediate-term) uptrend through resistance at $3.84, a price that marks the 50% retracement level of the previous downtrend from $4.86 through the low of $2.81. Given that weekly stochastics remain bullish, the NCI.X could now target the 67% retracement level of $4.18.

Soybean meal: The August contract closed $15.30 higher at $350.10. The secondary (intermediate-term) trend remains up. Given the continued bullish commercial outlook indicated by the market's inverted forward curve, August bean meal should be able to move above its previous spike high of $365.20. Weekly stochastics remain bullish.

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