Livestock Report
Walsh Trading Daily Insights
Commentary
April Lean Hogs opened lower and traded down to the low at 82.30. Bulls took over from here and price rallied to the session high at 84.675. high at 84.075. It pulled back, consolidated and settled at 84.075. The rally took price to just above the declining 100-DMA now at 84.575 and settlement was above the rising 21-DMA at 83.825. The settlement above the 21-DMA is a positive in conjunction with the bullish engulfing candle formed with today’s trade. Cash was strong today and traders are continuing to hope the cash lows are in and ready to take off. It has to or with the futures rich to cash we could see futures tumble again. Remember the stretched rubber band effect. Cutouts started off well but ended the day close to yesterday’s level with a lower load count. Exports are out before the open on Thursday and could influence sentiment. If Hogs hold settlement, we could re-test resistance at the 100-DMA. Resistance then comes in at 85.325. A failure from settlement could see price re-test support at 83.325 and then move towards support at 81.70. Support then comes in at 80.45.
The Pork Cutout Index decreased and is at 79.90 as of 02/07/2023.
The Lean Hog Index increased and is at 73.51 as of 02/06/2023.
Estimated Slaughter for Wednesday is 482,000, which is below last week’s 490,000 and above last year’s 476,000. The estimated total for the week (so far) is 1,441,000, which is below last week’s 1,448,000 and above last year’s 1,424,000.
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, February 9, 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.**
Ben DiCostanzo
Senior Market Strategist
Walsh Trading, Inc.
Direct: 312.957.4163
888.391.7894
Fax: 312.256.0109
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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