December Lean Hogs rallied on Tuesday, making the low early at 74.275 and the high late at 86.80. It dipped at the end of the day and settled at 76.25. The low tested support at 74.25 and the high pushed through resistance at 76.175 and it was able to settle above it. The cash market remains choppy with cutouts ending Tuesday higher and cash hogs via the index lower. Production is expected lower in the 4th quarter, so it looks like traders are leaning towards supporting futures as it is at a discount to the index. If Hogs can hold settlement, price could test resistance at 77.80. A pullback below support could see support tested at 75.60.
The Pork Cutout Index has not been updated.
The Lean Hog Index decreased and is at 86.81 as of 9/15/2023.
Estimated Slaughter for Tuesday is 484,000, which is above last week’s 477,000 and below last year’s 485,000. The estimated slaughter for the week (so far) is 969,000, which is above last week’s 945,000 and last year’s 967,000.
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, September 21, 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.
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Senior Market Strategist
Walsh Trading, Inc.
Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.
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