Commentary
June Lean Hogs continued its consolidation, creating a ledge formation. The high was at 92.25 and the low was at 90.10. It settled at 91.425. The past four sessions have basically traded within the 90.40 – 92.375 support and resistance zone. Cash hogs and cutouts continue to sag putting traders in a tough spot, in my opinion. With cattle prices near contract highs and the cash market rocking and rolling… hog traders are waiting, expecting… hoping for hog cash prices to follow the cattle market. It is cheap to cattle/ beef in my opinion and the strength in cattle is keeping a floor on hog prices… at least so far…. We’ll see!… If Hogs can take out resistance at 92.375, it could test resistance then comes in at 93.50. Resistance then comes in at 95.30. If settlement falls, we could see support revisited at 90.40 and then the declining 200-DMA now at 89.70. If Hogs take support out we could see support tested at 88.325.
The Pork Cutout Index decreased and is at 79.54 as of 03/31/2023.
The Lean Hog Index declined and is at 75.46 as of 03/30/2023.
Estimated Slaughter for Monday is 485,000, which is below last week’s 486,000 and last year’s 478,000. Saturday’s slaughter was revised lower to 96,000, lowering the weekly total to 2,489,000. This is still above last week’s 2,437,000 and last year’s 2,439,000.
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, April 06, 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.
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Ben DiCostanzo
Senior Market Strategist
Walsh Trading, Inc.
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tested support at the
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