Walsh Trading Daily Insights
Commentary
December Lean Hogs ended the week with a strong upside move, continuing its resurgence after making its low back on October 4th. Friday’s surge took price past resistance at 81.70 to a new high for this up move at 82.60. It settled near the high at 82.25. The low was at 80.60. The October contract expired Friday the close, settling at 93.375. With October gone the December contract is now both the lead and spot contract. It is trading at a wider than normal discount to the Lean Hog Index and is playing catch-up to the index. Exports are strong, especially with a strong dollar. Cash is showing signs of strengthening as cutouts and the index have rebounded. This bodes well for Hogs. If settlement holds, we could see price test resistance at 81.40. Resistance then comes in at 83.325. If price fails at settlement, we could test support at 81.70. Support then comes in at 80.45.
The Pork Cutout Index increased and is at 102.60 as of 10/13/2022.
The Lean Hog Index increased and is at 92.67 as of 10/12/2022.
Estimated Slaughter for Friday is 473,000 which is below last week’s 480,000 and above last year’s 471,000. Saturday slaughter is expected to be 113,000, which is below last week’s 150,000 and last year’s 255,000. The estimated total for the week (so far) is 2,545,000, which is below last week’s 2,558,000 and last year’s 2,630,000.
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 20, 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
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.
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