Walsh Trading Daily Insights
Commentary
December Lean Hogs made a new high for the fledging up move at 79.95. The high was just above resistance at 79.80 and the market couldn’t handle the success. It pulled back from the early high to test support at 78.80, making the low just below it at 78.675. It rallied the rest of the session to just below the high and settled at 79.525. The cash index was higher this morning and cash may have found some footing as cash hogs traded strong today with packers needing supply after Monday’s holiday. They were aggressive in their purchases. China’s pork prices are strong as demand was huge during its week-long holiday as consumers were out in force after being couped up over covid restrictions. Supply is tight over there and they have come to the US more in recent weeks. The government continues to sell pork out of its reserves to try to rein in prices and of course are blaming producers for holding back supplies. This could keep China in the US markets as they look to keep the supply flowing. A rally past resistance could see price test the 80.45 resistance level. Resistance then comes in at 81.70. If price fails at settlement, we could test support at 78.80. Support then comes in at 77.80.
The Pork Cutout Index increased and is at 100.29 as of 10/10/2022.
The Lean Hog Index increased and is at 92.98 as of 10/07/2022.
Estimated Slaughter for Tuesday is 489,000 which is above last week’s 487,000 and last year’s 482,000. The estimated total for the week (so far) is 977,000, which is above last week’s 952,000 and last year’s 956,000.
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, October 13, 2022 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
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