October Lean Hogs opened lower and traded to the session low at 74.825. The low was just above support at the flattening 8-DMA now at 74.725. Price reversed from here and traded to the high at 76.875. The high tested resistance at the declining 21-DMA at 76.475, getting just above it and then price drifted into the close and settled at 76.50. This is a tick above the average and must hold on Friday, in my opinion. Cash fundamentals are attempting to stabilize and move higher but is in a tough situation. Export sales dropped from the week before as Mexico pulled back on its purchases and China once again was out of the markets after making excellent purchases last week. This keeps the pressure on bulls as exports have been the saving grace for hogs. If price breaks down from settlement, we could pullback and test support at 75.60. Support then comes in at the 8-DMA and then 74.25. If settlement holds price could move towards resistance at 77.80.
The Pork Cutout Index ticked higher and is at 99.36 as of 08/14/2024.
The Lean Hog Index decreased and is at 90.18 as of 08/13/2024.
Estimated Slaughter for Thursday is 479,000, which is above last week’s 469,000 and last year’s 473,654. The estimated total for the week(so far) is 1,925,000, which is above last week’s 1,843,000 and last year’s 1,891,730.
For those interested I hold a weekly livestock webinar on Tuesdays and my next webinar will be Tuesday, August 20, 2024, 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
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