Commentary
February Lean Hogs couldn’t get out of bed on Tuesday, opening lower and making the session high at 80.60 by 9am (CST), unable to overtake Monday’s settlement. It broke down below support at 8045 and 79.80 to a new low for the current down move at 79.35. It bounced and settled at 79.80. Settlement was right at support. Continued anguish over the inability for the cash market to move higher is dragging on the futures market, in my opinion. If Hogs hold settlement, we could revisit resistance at 80.45. Resistance then comes in at 81.70. A failure from settlement could see price test support at 78.80. Support then comes in at 77.80.
The Pork Cutout Index decreased and is at 84.49 as of 01/09/2023.
The Lean Hog Index declined and is at 76.79 as of 01/06/2023.
Estimated Slaughter for Tuesday is 467,000 which is above last week’s 433,000 and last year’s 453,000. Monday’s slaughter was revised lower to 485,000 from 491,000. The estimated total for the week (so far) is 952,000, which is above last week’s 458,000 and last year’s 900,000.
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, January 12, 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.
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Ben DiCostanzo
Senior Market Strategist
Walsh Trading, Inc.
Direct: 312.957.4163
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