LIVE CATTLE:  Dec

Lack of follow thru buying attracted early selling in the cattle complex.  The market broke below $83.45 and eventually faded to just below $83.00 before attracting buying interest.  The daily close below $83.45 will keep pressure on the market to start the day and an open below $83.00 would then signal a selloff down to $82.17 by the day's end.  A market open back above $83.45 would negate yesterday's secondary sell signal and allow a pop back up to $83.85.  Above $83.85 the market targets $84.32, in which a close above this resistance would then turn the market friendly for a run back to $85.20. 

Support: 83.05 & 82.72       Resistance: 83.80 & 84.32      Long Term Trend: Down below $84.32      Short Term Trend: Down below 83.80

FEEDER CATTLE:   Jan

Feeder cattle broke early in response to a higher trading corn market and were never able to really recover much of their losses.  The daily close below $92.30 will keep pressure on the market, and an open below $91.72 today will open the door for trade to dip down to $91.10.  A market open above $91.72 keeps the market stable with test of $92.15 resistance very likely.  A push through $92.15 and the market corrects back into a wide zone from a minimum of $92.70 to $93.20.  At this time only a close above $94.17 would begin to look like the market is working out of its bear trend. 

Support:  91.72 & 91.10      Resistance:  92.15 & 92.70      Long Term Trend: Down below 94.17       Short Term Trend: Down below 93.20

CORN:   Mar

An early rally to new highs faded mid morning as the corn market closed towards its lows of the day.  Overnight trade made it down to first daily support of 408.  The market feels like the buying has began to dry up and if continued selling is the feature then the market could dip back to 392.  Today an open below 413 the market should stay under pressure.  An open back above 413 or a push back above then again takes the market back to 416, and above 416 the market retest yesterday's highs.  We will have to watch the action over the next couple days as the market at this time looks like it has put in a double top.   

Support: 411, 408, & 406      Resistance: 413, 416, & 421      Long Term Trend: Up above 410      Short Term Trend: Up above 408

Hogs:  Feb

Feb hogs traded sideways to slightly lower throughout most of the session before settling barely positive.  Today $65.45 will be key resistance, an open or push above this area could ignite the bulls for another push up to $65.45 by the close of the week.  Trade that finds selling at this level will be subject to more of a correction of Tuesday's big run higher.  An open below $63.95 could allow a dip to $63.30 and again possibly $62.62.   The market needs to hold above $62.62 on a weekly basis, and in doing so will be positive going into next week.    

Support: 63.95 & 63.30       Resistance: 64.45 & 65.45      Long Term Trend: Up above 62.62       Short Term Trend: Up above 63.95

Brock Thompson Trading, 2525 Lakeview Dr. Amarillo, TX 79109, brock@brockthompsontrading.com (806)-350-2400

Make note that intra-day support and resistance prices change throughout the day, so if you have any questions during market hours please give me a call for an update.    

These forecasts are solely the opinion of the author and make no representation as to how the market will actually trade.  There is substantial risk of loss in trading futures and options; therefore you should carefully consider whether trading is appropriate for you in the light of your financial situation.