October lean hogs managed to put a tourniquet on today, finishing at session highs, a stone throw from limit up. The consolidation from Monday’s session is all you can ask for if you’re in the bull camp
With the sun-rising and the panic in the outside markets subsiding, it is possible we get a more normal trading session today for livestock.
October live cattle broker lower on the open on the back of a tweet from President Trump regarding Trade with China; “China was supposed to start buying our agricultural product now - no signs that they are doing so.
In lean hogs, on a seasonal basis, we have generally tighter supplies from the start of the year into April. After late April, supply takes a more dramatic decline into the year's lows in the summer. That does not mean price goes straight up in this period. Spring is a period where a little shake-up is normally seen. Traders are aware of a slight slump in prices from the minor February or March peak into spring.
U.S. chicken and pork exports could benefit from continued problems this year; FOR live cattle, The general adage is that we get two limited rallies each winter due to storms/cold weather.
Unlike cattle, hog futures didn't get too excited about the cold temperature issue.
USDA's daily kill estimate today showed a minor revision for last week.
Cattle futures finished the day lower for the fifth consecutive.
Officially the general uptrend in hog futures pricing still stands.
Futures did well today. This is likely more from the cattle market touching limit up today than any new news for hogs but no one will complain too much.