June Lean Hogs opened higher and challenged resistance at 92.375, trading to the session high at 92.775. It quickly turned lower and by mid-morning was at the session low at 90.975. It consolidated in the middle of the range for the rest of the day and settled in the lower end of the range at 91.35. The cash market continues to be stifled as cutouts and now the Lean Hog Index has turned lower. Not a good deal if you think futures prices should rally. Futures are struggling. Today’s price action in futures was weak, in my opinion. It consolidated within Monday’s range and is stuck in the middle of Friday’s big down move and closed lower. The lower close keeps the pressure on bulls and the weakening cash market doesn’t help. A failure from settlement could see price revisit support at the declining 200-DMA now at 90.45 and nearby support at 90.40. If price can’t hold support, we could then make our way down to test support at 88.325. If price can hold settlement, we could test resistance at 92.375 and then the Monday high at 92.95. Resistance then comes in at 93.50.
The Pork Cutout Index decreased and is at 84.49 as of 03/20/2023.
The Lean Hog Index declined and is at 79.55 as of 03/17/2023.
Estimated Slaughter for Tuesday is 485,000, which is even with last week and above last year’s 473,000. Monday’s slaughter was revised lower to 459,000. The estimated slaughter for the week (so far) is 944,000, which is below last week’s 969,000 and above last year’s 942,000.
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, March 23, 2023, 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.
tested support at the
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