April Lean Hogs continued its collapse today nearly going down limit on expanded limits. It fell 4.275 out of the 4.5 allowed move. Wow!! The collapse took out the 53.80 support level and dipped below trendline support at 52.55 making the low at 52.25. It settled above the trendline at 52.975. Support for Thursday comes in at the trendline at 52.325, followed by the 51.80 support level. If the panic selling continues the 49.925 support level awaits. Slaughter continues at an extreme rate which continues to pressure the Lean Hog index and the Pork cutout index. The Lean Hog index is at 54.43 (a/o 2/18) and the Pork cutout index is at 62.04 (a/o 2/19). If support holds, consolidation within the Wednesday range likely. The limits roll back to 3 handles.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Friday, February 22nd at 2:30 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,
www.walshtrading.com
RISK DISCLOSURE: THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES AND OPTIONS TRADING. THIS REPORT IS A SOLICITATION FOR ENTERING A DERIVATIVES TRANSACTION AND ALL TRANSACTIONS INCLUDE A SUBSTANTIAL RISK OF LOSS. THE USE OF A STOP-LOSS ORDER MAY NOT NECESSARILY LIMIT YOUR LOSS TO THE INTENDED AMOUNT. WHILE CURRENT EVENTS, MARKET ANNOUNCEMENTS AND SEASONAL FACTORS ARE TYPICALLY BUILT INTO FUTURES PRICES, A MOVEMENT IN THE CASH MARKET WOULD NOT NECESSARILY MOVE IN TANDEM WITH THE RELATED FUTURES AND OPTIONS CONTRACTS.