October Lean Hogs Started the week strong as it rallied all session to the high at 76.125. The low came early at 74.55 ad settlement was near the high at 75.975. Strengthening fundamentals are driving futures higher as the cash markets bounce back after their recent declines. Consumer demand has been leading the way as grocers have been aggressive in purchasing pork, leading the cutouts to rally to recent highs. Cutouts were higher again on Monday led by hams and the belly. This could further embolden bulls as they would anticipate cash prices move higher in response to the strong cutout market. The rally stopped just shy of resistance at 76.175 with settlement below it keeping the pressure on bullish traders. A failure from settlement could see price test support at 75.60. Support then comes in at 74.25. If price can take out 76.175, it could test resistance at 77.80. Resistance then comes in at 79.80.
The Pork Cutout Index increased and is at 100.23 as of 07/19/2024.
The Lean Hog Index increased and is at 89.71 as of 07/18/2024.
Estimated Slaughter for Monday is 459,000, which is below last week’s 478,000 and last year’s 459,967.
For those interested I hold a weekly livestock webinar on Tuesdays and my next webinar will be Tuesday, July 23, 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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