October Lean Hogs took one to the chin and was knocked down to the canvas. The cash market has weakened over the past couple of days and traders let the market have it putting Hogs in danger. The market opened lower and made its high at 84.25, falling the rest of the session to the low at 81.475. It settled just above the low at 81.575. The knockdown took price below support at 81.70 and is back at the lower end of its consolidation range. The range is from a high at 86.75 and low at 81.025. Exports are out before the open and could have an effect on the price action on Thursday. If Hogs can get above the key level at 81.70, it could retest resistance at the 83.325. A failure at settlement could see a test of the 81.025 consolidation low. A breakdown below the low could see support tested at 80.45 and then 79.80.
The Pork Cutout Index decreased and is at 113.59 as of 8/08/2023.
The Lean Hog Index declined and is at 104.58 as of 8/07/2023.
Estimated Slaughter for Wednesday is 468,000, which is even with last week and below last year’s 474,000. The estimated total for the week (so far) is 1,350,000, which is below last week’s 1,420,000 and last year’s 1,407,000.
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, August 10, 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.
tested support at the
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