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April Lean Hogs opened unchanged and rallied to the session excessive at 93.05. Value reversed course and fell to the low at 90.725. It consolidated the remainder of the session and settled at 91.625. The early rally approached resistance at 93.50 after which broke all the way down to help on the flattening 8-DMA now at 90.65 after which failed once more to carry resistance at 92.375with the decrease settlement. Hogs at the moment are in consolidation mode with 92.375 and the 8-DMA because the pivots. There may be additionally sturdy help just under the 8-DMA at 90.40. The money markets proceed to grind larger because the seasonals are in full show with slaughter falling and demand choosing up for the Easter vacation. The February contract expires on Friday and it settled at 87.70 , which to me signifies the market continues to see money transferring larger. The index is beneath the February contract (see beneath) and needs to be larger tomorrow when the CME releases to present common. The cutout broke via 100 within the morning report and the afternoon report got here in close to 100, which is able to possible trigger the Cutout index to leap and supply extra help to the money index. We’ll see!… A breakdown from settlement might see worth re-test the Friday low after which probably transfer in direction of help on the 8-DMA and the close by 90.40 help stage. Hogs have a niche from the February 5th low at 89.975 to the February 4th excessive at 89.90. Help then is available in on the rising 13-DMA now at 90.15. Value continued to fail on the 92.375 resistance stage regardless that it made a brand new current excessive on Monday. If worth can overcome this stage and settle above it, we might see a escape and a then profitable problem of resistance at 93.50 might ship worth up in direction of resistance at 95.30.
The Pork Cutout Index elevated and is 94.87 as of 02/07/2025.
The Lean Hog Index elevated and is at 85.39 as of 02/06/2025.
Estimated Slaughter for Monday is 491,000, which is above final week’s 485,000 and final 12 months’s 481,478.
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Ben DiCostanzo
Senior Market Strategist
Walsh Buying and selling, Inc.
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