February Lean Hogs opened lower and continued working its way lower all session to the low at 69.025. The high was the opening price at 70.90. It settled near the low at 69.30. Traders looked at the Hogs and Pigs report with a bearish lens and took price lower. The volume was light, but the breakdown broke through support and if we see follow-through on Wednesday could pressure price towards the recent low at 66.25. Settlement was below the 21-DMA now at 69.60 and a weaker open could see support tested at 68.75 and then 67.80. Support then comes in at 66.55. If price can hold settlement, we could test resistance at 69.90. Resistance then comes in at the 38% retracement at 70.475.
The Pork Cutout Index decreased and is at 82.41 as of 12/22/2023.
The Lean Hog Index decreased and is at 66.25 as of 12/21/2023.
Estimated Slaughter for Monday is 463,000, which is below last week’s 491,000 and last year’s 479,000. Friday’s slaughter was revised lower to 428,000. The estimated total for the week (so far) is 2,420,000, which is below last week’s 2,682,000 and above last year’s 1,783,000.
For those interested I hold a weekly livestock webinar on Tuesdays and my next webinar will be delayed to Wednesday, December 27, 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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