Walsh Trading Daily Insights
Commentary
December Lean Hogs gap opened lower, closed the gap as it made the session high at 84.85 and then stair stepped lower the rest of the session to the low at 83.25. It settled just above the low at 83.30. The low and settlement was below the 83.325 support level. Traders continue to worry about the weakening cash market as it continues to struggle. Cutouts and cash hogs are working lower and the indices are reflecting the weakness. Exports are out before the Thursday open, so it could dictate trade in the futures market going forward. If hogs fail below the low, we could test support at 81.70. Support then comes in at 80.45. If price can recover from 83.325, we could see price re-test resistance at 85.325, the declining 50-DMA now at 85.65 is next. Resistance then comes in at the declining 8-DMA now at 86.225.
The Pork Cutout Index decreased and is at 98.82 as of 11/01/2022.
The Lean Hog Index ticked lower and is at 93.75 as of 10/31/2022.
Estimated Slaughter for Wednesday is 488,000 which is above last week’s 484,000 and above last year’s 476,000. Tuesday’s slaughter was revised lower to 482,000. The estimated total for the week (so far) is 1,456,000, which is below last week’s 1,457,000 and above last year’s 1,431,000.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursdays (except holiday weeks) and our next webinar will be on Thursday, November 03, 2022 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
Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.
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