The August Lean Hogs contract collapsed on Friday, going limit down and settling limit down for the session. Breaking down below the 80.40 – 79.80 support area and the 100 DMA at 80.47 set the market in flames and they couldn’t be put out. The low and settlement price was 77.90 which is right at the 77.80 support level. Continued panic selling could see price test support at 76.175 and then 75.60. If 77.80 holds then consolidation within the Friday range is possible. Limits will expand to 4.5 handles for trade on Monday. The Lean Hog Index inched higher and is at 79.55 as of June 19th. The pork cutout index dropped to 80.30 as of June 20th.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, June 27th at 3:00 pm. It is free for anyone who wants to sign up and the link for sign up is below. If you cannot attend live a recording will be sent to your email upon completion of the webinar.
**Call me for a free consultation for a marketing plan regarding your livestock needs.* *
Ben DiCostanzo
Senior Market Strategist
Walsh Trading, Inc.
Direct: 312.957.4163
888.391.7894
Fax: 312.256.0109,
www.walshtrading.com
RISK DISCLOSURE: THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES AND OPTIONS TRADING. THIS REPORT IS A SOLICITATION FOR ENTERING A DERIVATIVES TRANSACTION AND ALL TRANSACTIONS INCLUDE A SUBSTANTIAL RISK OF LOSS. THE USE OF A STOP-LOSS ORDER MAY NOT NECESSARILY LIMIT YOUR LOSS TO THE INTENDED AMOUNT. WHILE CURRENT EVENTS, MARKET ANNOUNCEMENTS AND SEASONAL FACTORS ARE TYPICALLY BUILT INTO FUTURES PRICES, A MOVEMENT IN THE CASH MARKET WOULD NOT NECESSARILY MOVE IN TANDEM WITH THE RELATED FUTURES AND OPTIONS CONTRACTS.