You are currently viewing Hogs Falter After Early Rally

Hogs Falter After Early Rally

August Lean Hogs opened lower, raced to the session high at 91.175 and then turned south for essentially the rest of the session, making the low at 8785. It drifted into the close to settle at 88.175.  The cutout market saw a rally on the Friday cutout, creating some hope that cash may bottom. But weakening morning cutouts saw futures traders suck the life out of the August contract, taking price below support at 88.325. The initial rally stalled above resistance at 90.40 and below the declining 21-DMA now at 91.75. The afternoon cutout fell some more and along with a falling cash hog price could put even more pressure on the open for the August contract in my opinion. This also a holiday week and we could see limited activity in the futures market further pressuring futures. A failure from settlement could see price revisit support at 87.10. If price can take out resistance at 88.325, it could re-test resistance at 90.40.

The Pork Cutout Index decreased and is at 96.34 as of 06/28/2024. 

The Lean Hog Index decreased and is at 89.47 as of 06/27/2024.

Estimated Slaughter for Monday is 477,000, which is above last week’s 463,000 and last year’s 394,314.

For those interested I hold a weekly livestock webinar on Tuesdays and my next webinar will be Tuesday, July 02, 2024, 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.

Sign Up Now

**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.​
tested support at the
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.
On the date of publication, Ben DiCostanzo did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Leave a Reply