Walsh Trading Daily Insights
Commentary
December Lean Hogs continued its lack luster trading, making the low early in the trading session at 84.35, rallying to the high at 85.95 and then consolidating the rest of the session, settling at 84.875. The early low tested support at the 50DMA at 84.575 and the high tested resistance at the 21-DMA at 85.825. Settlement was below the key level at 85.325. The cash market continues to struggle even as slaughter levels remain below last year. The inability of the cash market to rally, keeps the pressure on futures and futures weakness in turn makes it difficult for cash to rally as pessimism rules in the hog market. This is with the upcoming Thanksgiving holiday coming up with turkey supply expected to be tight. A breakdown below the 50-DMA could see price test support at 83.325. Support the comes in at 81.70. If price can overtake the 21-DMA, we could see price test resistance at 87.10.
The Pork Cutout Index increased and is at 95.96as of 11/11/2022.
The Lean Hog Index decreased and is at 88.63 as of 11/10/2022.
Estimated Slaughter for Monday is 493,000 which is below last week’s 494,000 and above last year’s 483,000. Saturday slaughter was revised higher to 102,000. The estimated total for last week is now 2,503,000, which is below last week’s 2,577,000 and last year’s 2,620,000.
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, November 17, 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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