If you would like to receive more information on the commodity markets, please use the link to join our email list – Sign Up Now
For those interested I hold a weekly livestock webinar on Tuesdays and my next webinar will be Tuesday, November 12, 2024, at 3:15 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.
February Lean Hogs opened higher and then traded to the session high at 86.60. It reversed course and broke down to the session low at 82.675. It consolidated near the low the rest of the session and settled at 83.55.
In my opinion, profit-taking is taking place in the Hogs as the cash markets are mixed, with the Pork Cutout Index continuing to work higher and the Lean Hog Index starting to work lower again. The rally at the start of the day took price to just above the 13-DMA, which was at 86.50 at the time. The collapse in the Hogs took price below support at 85.325 and 83.325. Settlement, however, was just above the 83.325 support level, indicating the support held.
The move lower also took out the 83.75 low from December 10th, giving us a new low for the down move. The low stalled just above the rising 50-DMA, now at 82.15, which will be a critical level in my opinion for Hogs. It is rising, and a settlement or two below the 50-DMA could set Hogs on a downward spiral towards the 100-DMA, now at 79.65. We’ll see!
If price breaks down from settlement, it could test support at the rising 50-DMA. Support then comes in at 81.70. If price can hold settlement, it could test resistance at 85.325.
The Pork Cutout Index increased and is at 93.35 as of 12/13/2024.
The Lean Hog Index down-ticked and is at 83.90 as of 12/12/2024.
Estimated slaughter for Monday is 487,000, which is below last week’s 489,000 and above last year’s 479,223.
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. 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.
