Walsh Trading Daily Insights
Commentary
December Lean Hogs continued its rally on Wednesday, trading to a new high for the up move at 87.50. The high is just short of resistance at the declining 50-DMA now at 87.75 and above the 87.10 resistance level. Settlement was at 87.375 and was above the 87.10 resistance level. It faces formidable resistance however, at the 50-DMA on Thursday. The low was at 86.25. Thursday will bring Export Sales before the open and this could provide the momentum for trading up or down. The dollar strength could be a hurdle for exports. A break out above the 50-DMA could see resistance tested at 88.325. If price fails at settlement, we could test support at 85.325. Support then comes in at 83.325.
The Pork Cutout Index decreased and is at 102.96 as of 10/18/2022.
The Lean Hog Index decreased and is at 93.19 as of 10/17/2022.
Estimated Slaughter for Wednesday is 491,000 which is even with last week and above last year’s 479,000. Tuesday’s slaughter was revised lower to 475,000 from 490,000. The estimated total for the week (so far) is 1,457,000, which is below last week’s 1,468,000 and above last year’s 1,432,000.
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
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