December Hogs are trading +0.125 this morning with a very strong cattle market, and a continued strong pork cutout supporting the bulls. The CME Lean Hog Index as of October 20 came in at 65.23, up 1.02 from the previous session and up from 60.24 the previous week. The USDA pork cutout, released after the close yesterday, came in at $75.49, up 31 cents from Monday and up from $73.88 the previous week. This was the highest it had been since September 20.
TODAY’S MARKET IDEAS: The outlook ahead for increased slaughter and production could spark a significant sell-off if pork values turn down, but if park values stay strong, the cash market may remain in a short-term uptrend. December hog selling resistance is at 64.90, with 61.70 and 60.55 as initial key support.
Dec ’17 Lean Hogs Daily Chart