August Lean Hogs burst out of the starting gate and raced to the high of the day at 92.80. It couldn’t sustain the enthusiasm and broke down the rest of the session, making its low at 89.90. It settled at 90.05. The rally stalled just above resistance at 92.375 and the fall took price below support at 90.40. It put Hogs back into the low end of its 93.825 – 88.775 trading range. Traders remain concerned and confused with the looming enactment of Prop12 law in California, in my opinion. California has extended the deadline for compliance of the law until December 31,2023 for product purchased before July 1st. Any product purchased after July 1st must be in compliance with the law. The push back for product already purchased is an attempt to give vendors time to work through supply as California will focus on outreach, certification and accreditation of 3rd party certifying agents in the meantime. Wow…. that’s a mouthful…. Are there enough producers/ distributors to supply California with product? Are they willing to comply? Who is responsible for compliance? Who will go to jail for non-compliance? Lawyers will have a field Day???? A rally above 90.40 could see price move towards resistance at 92.375. A failure from settlement could see price test support at 88.325. Support then comes in at 87.10.
The Pork Cutout Index increased and is at 96.02 as of 6/23/2023.
The Lean Hog Index increased and is at 91.41 as of 6/22/2023.
Estimated Slaughter for Monday is 440,000, which is below last week’s 459,000 and last year’s 460,000.
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, June 29, 2023 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.
tested support at the
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