Technically Speaking

Weekly Analysis: Livestock Markets

Live Cattle: The August contract closed $3.75 lower at $147.475. The secondary (intermediate-term) downtrend continues to strengthen. The contract closed the week below initial support near $148.125, the 38.2% retracement level of the previous uptrend. Weekly stochastics are still bearish, indicating the contract could test support at the 50% retracement level near $146.20, then the 67% retracement level near $144.25.

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Feeder Cattle: The August contract closed $6.20 lower at $211.25 last week. August feeder cattle remain in a secondary (intermediate-term) downtrend with the contract closing below 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. Weekly stochastics are bearish indicating the contract should slide to a test of the 67% retracement level near $207.05.

Lean hogs: The August contract closed $2.725 lower at $73.65 last week. Weekly stochastics are neutral-to-bearish meaning the contract could look to retest its low of $71.175. However, the last secondary (intermediate-term) signal by weekly stochastics was a bullish crossover below the oversold level of 20% the week of March 23.

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $4.00, up 6 cents for the week. The NCI.X posted a new 4-week high last week, indicating its secondary (intermediate-term) trend remains up. With weekly stochastics still bullish the next target is $4.18, a price that marks the 67% retracement level of the previous downtrend from $4.86 through the low of $2.81.

Soybean meal: The August contract closed $5.50 higher at $355.60. The secondary (intermediate-term) trend remains up. The contract moved to a new 4-week high of $366.40 last week on continued support from a bullish commercial outlook, indicated by the market's inverted forward curve. The major (long-term) price target is $428.20.

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