LIVESTOCK: October live cattle closed up $2.22 at $126.90 yesterday. Prices gapped sharply higher on the daily bar chart, hit a fresh four-month high and closed near mid-range. Traders are still sorting through news the Tyson meat packing plant plans to suspend purchases of cattle fed beta-agonists, such as Zilmax. Traders believe this will reduce the beef supply, especially if other packing plants follow suit. Cattle bulls yesterday quickly gained the near-term technical advantage. A four-week-old downtrend on the daily bar chart was soundly negated yesterday. Bulls’ next upside price “breakout” objective is to push and close prices above solid resistance at $129.50. The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at this week’s low of $124.12. First resistance is seen at yesterday’s high of $127.67 and then at $128.00. First support is seen at yesterday’s low of $126.40 and then at $126.00. Wyckoff’s Market Rating: 6.0

October feeder cattle closed up $1.70 at $160.52 yesterday. Prices closed near the session high and hit another fresh six-month high yesterday. The feeder bulls have the solid overall near-term technical advantage. Prices are in a 10-week-old uptrend on the daily bar chart. The next upside price breakout objective for the feeder bulls is to push and close prices above solid technical resistance at $162.50. The next downside price breakout objective for the bears is to push and close prices below solid technical support at $157.80. First resistance is seen at $161.00 and then at $161.50. First support is seen at $160.00 and then at $159.50. Wyckoff’s Market Rating: 8.0

October lean hogs closed up $0.32 at $85.25 yesterday. Prices closed nearer the session low yesterday. Trading has been extremely choppy on the daily chart recently. The bulls and bears are on a level near-term technical playing field. The next upside price breakout objective for the hog bulls is to push and close prices above solid chart resistance at this week’s high of $86.65. The next downside price breakout objective for the bears is pushing prices below solid technical support at the July low of $82.95. First resistance is seen at yesterday’s high of $85.80 and then at $86.20. First support is seen at $84.85 and then at $84.00. Wyckoff’s Market Rating: 5.0