December Lean Hogs opened higher, traded down to the session low at 74.125 and then rallied to the high at 75.15. It consolidated the rest of the session and settled near the high at 74.875 in a quiet session. With December the lead contract and still trading at a steep discount to the Lean Hog Index, traders continue to move futures towards the index. The index has been stagnant, hovering around 84.00, with the pork cutout index unable to see upward price pressure. It has stabilized around 95.00. A little above and then a little below it. Production has been high yet demand has seemingly neutralized the excessive supply. This has kept cash stable and is allowing traders to take a chance and bring futures towards the cash. The Quarterly Hogs and Pigs report comes out on Friday after the close, which will give us an idea on the direction of hog supplies. We’ll see!… The Monday high is a new high for the recent up move, indicating that bulls are in control of the price action for now. If price holds settlement, we could test resistance at 75.60. Resistance then comes in at 76.175. If price fails to hod settlement, we could test support at 74.25. Support then comes in at 72.80.
The Pork Cutout Index ticked higher and is at 94.53 as of 09/20/2024.
The Lean Hog Index down ticked and is at 84.36 as of 09/19/2024.
Estimated Slaughter for Monday is 487,000, which is above last week’s 475,000 and last year’s 470,032.
For those interested I hold a weekly livestock webinar on Tuesdays and my next webinar will be Tuesday, September 24, 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
Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.
tested support at the
Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. The information contained on this site is the opinion of the writer or was obtained from sources cited within the commentary. The impact on market prices due to seasonal or market cycles and current news events may already be reflected in market prices. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
All information, communications, publications, and reports, including this specific material, used and distributed by Walsh Trading, Inc. (“WTI”) shall not be construed as a solicitation for entering into a derivatives transaction. WTI does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71.