The Hog market continued its run higher today making limit moves throughout the complex that expires in 2019. The lead contract (June) reached the 90 handle, an area not seen since June 2016. That high was 90.425, which is the resistance level that June Hogs is currently challenging. The high today was 90.25 and the only reason the June 2016 high wasn’t breached today was probably because price couldn’t go any higher due to the limit move. The limit will be expanded for trading on Thursday to 4.5 handles, which put the potential high at 94.75. If the 90.425 resistance level is taken out a push to resistance at 92.375 and then 93.50 is possible. A failure from resistance could see consolidation within the Wednesday range. Hogs are at lofty levels but disease progression in China continues and traders’ expectation of the Chinese buying up the world pork supply grows.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, March 21st 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.