Walsh Trading Daily Insights
Commentary
February Lean Hogs collapsed as Chinese protests over the weekend created a firestorm of downside action in the Hog market. The protests and most likely severe crackdowns left the market worried about Chinese demand for pork. The cash market’s continued weakness also pushed February Hogs lower as the December contract is no longer the lead contract and February failed against resistance at the 100-DMA creating negative sentiment. Price opened lower, with the high coming in at 88.15 and then crashing and making the low at 84.575. It settled near the low at 84.75. Settlement was below support at 85.325 and keeps the pressure on Hogs, in my opinion. Continued weakness could see price test support at the 50-DMA now at 83.975. Support then comes in at 83.325. Re-evaluation of the Chines protests could see price hold support and test resistance at the 21-DMA at 86.325. Resistance then comes in at 87.10.
The Pork Cutout Index decreased and is at 90.97 as of 11/25/2022.
The Lean Hog Index decreased and is at 85.563 as of 11/24/2022.
Estimated Slaughter for Monday is 493,000 which is above last week’s 488,000 and last year’s 483,000. Last week’s slaughter was revised lower to 2,213,000.
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, December 01, 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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