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.
**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.
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