If you would like to receive more information on the commodity markets, please use the link to join our email list – Sign Up Now
For those interested I hold a weekly livestock webinar on Tuesdays and my next webinar will be Tuesday, November 05, 2024, at 3:15 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.
December Lean Hogs opened higher and up ticked to the session high at 84.675. This is another new high for the up move but, Hogs couldn’t take it any higher and it grinded lower the rest of the session to the low at 83.65. It settled near the low at 83.80. Traders watching the weakness in the cattle markets may have felt some pressure and it looked like they started to take some profits after a nice run higher. The cash market continues to impress as the indices continue to move higher. Exports remain strong with 44,800 tons sold on the report that came out Thursday morning. This is with cutouts and the US Dollar rallying during the buying period. Impressive to say the least. Consumer demand has also hung in there and with production levels lower than expected has seen the cutout index break through the 100.00 level again and showing so far, no signs of a slowdown. This as beef cutouts looks like it has peaked and has been moving lower as slaughter levels have moved higher as the packer seems to be making money and has increased slaughter numbers to take advantage of the price action, in my opinion. The cash strength usually wanes as we head into year end and with the strong rally we have seen in futures, with the seemingly healthy long position speculators have acquired, more profit taking could take place on any cash weakness. With the strong open and weak close on Thursday, traders may already be jumping the gun. We’ll see!… If price breaks down from settlement, it could test support at 83.325. Support then comes in at 81.70. If price can hold settlement, it could revisit the Thursday high. Resistance then comes in at 85.325.
The Pork Cutout Index increased and is at 100.24 as of 10/30/2024.
The Lean Hog Index increased and is at 86.78 as of 10/29/2024.
Estimated Slaughter for Thursday is 486,000, which is below last week’s 487,000 and above last year’s 485,577. The estimated total for the week (so far) is 490,000, which is below last week’s 491,000 and last year’s 500,231.
**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.
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.