October Lean Hogs made an impressive run after opening weak and trading down to support at 83.325. It broke out of its trading range, closing strongly above resistance. It opened lower, trading below support to the low at 83.075 and then reversing course and rallying the rest of the session to the high at 86.25. The rally took price above resistance at 85.325 and it settled at 86.00. The price action formed a bullish outside candlestick. The cash market reversed course on Monday, with cutouts jumping and processors having to be aggressive in order to make cash purchases. This put renewed strength in Hogs and could lead to a test of strong resistance up above at the 200-DMA now at 86.775 and 87.10. A pull-back from settlement could see support tested at 85.325 and then the rising 8-DMA now at 84.25. Traders are paying attention to the mid-day cutout and cash reports, looking to them for day-to-day direction, in my opinion.
The Pork Cutout Index decreased and is at 114.04 as of 7/28/2023.
The Lean Hog Index down ticked and is at 105.81 as of 7/27/2023.
Estimated Slaughter for Monday is 476,000, which is above last week’s 456,000 and last year’s 412,000.
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, August 03, 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.
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