Walsh Trading Daily Insights
February Lean Hogs continued lower on Tuesday, trading down to the 50-DMA now at 83.90, making the low just above it at 84.025. The high came in at 85.475, just above resistance at 85.325. Settlement was near the low at 84.15. Cash trade continues to be worrisome as both cutouts and cash prices continue to sag. Slaughter and weights continue to trail last year and with production lower as a result, the inability to get prices moving higher could be an indication of weak demand for pork, in my opinion. This, coupled with the lockdowns, protests and resulting crackdown on the people of China has created more negative sentiment for Hogs. Continued pressure on price could take Hogs below the 50-DMA and test support at 83.325. Support then comes in at 81.70. If Hogs can hold the 50-DMA, we could revisit resistance at 85.325. Resistance then comes in at the 21-DMA, now at 86.225.
The Pork Cutout Index decreased and is at 90.14 as of 11/28/2022.
The Lean Hog Index decreased and is at 84.63 as of 11/25/2022.
Estimated Slaughter for Tuesday is 494,000 which is above last week’s 492,000 and last year’s 479,000. The estimated total for the week is 97,000, which is above last week’s 980,000 and last year’s 962,000.
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.**
Senior Market Strategist
Walsh Trading, Inc.
Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.
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