Livestock Report

Ben DiCostanzo General Commentary

Walsh Trading Daily Insights

Commentary

February Lean Hogs gap opened lower, breaching the 50-DMA (83.85) at 83.725 then whirled around and surged to an early high at 85.90 by mid-morning. The open turned out to be the session low and the rally stalled, testing the middle of the range and grinding higher to the session high at 85.95. It pulled back and settled at 85.35. The lower open and subsequent rally created a “potentially” Bullish Engulfing candle formation.  The rally took price past resistance at 85.325 (settlement above it), but it stopped just short of the 21-DMA now at 86.275. The market saw some short-covering after digesting the Chinese protest news the past two days. Cash market is still showing weakness in the indices, but cutouts showed some positivity in the morning cutout report. Traders may be looking for a seasonal bounce in the cash markets and Exports are out before the open on Thursday and with the Dollar on the decline, it will be interesting to see what transpired during the holiday week. If price can’t hold above settlement, we could re-visit support at the 50-DMA. Support then comes in at 83.325. If Hogs can overtake the 21-DMA, we could test resistance at 87.10. Resistance then comes in at 88.325.

The Pork Cutout Index decreased and is at 88.67 as of 11/29/2022.

The Lean Hog Index decreased and is at 84.21 as of 11/28/2022.

Estimated Slaughter for Wednesday is 494,000 which is above last week’s 448,000 and last year’s 479,000. Tuesday’s slaughter was revised lower to 487,000. The estimated total for the week is 1,474,000, which is above last week’s 1,428,000 and last year’s 1,441,000.

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.

Sign Up Now

**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

bdicostanzo@walshtrading.com

www.walshtrading.com

Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.​
tested support at the
Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. The information contained on this site is the opinion of the writer or was obtained from sources cited within the commentary. The impact on market prices due to seasonal or market cycles and current news events may already be reflected in market prices. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.​

All information, communications, publications, and reports, including this specific material, used and distributed by Walsh Trading, Inc. (“WTI”) shall not be construed as a solicitation for entering into a derivatives transaction. WTI does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71.