Hog Futures has recently opened the week with a six-week high as investors estimated a higher price values in the cash markets.
The Cash Price for slaughter-ready hogs has increased for 11 days straight and was able to maintain such performance until this week’s Monday. Such uptrend might’ve rooted from the New Midwestern Slaughterhouses’ provision of giving hog ranchers an opportunity to sell their livestock in a much bigger market.
To maintain such uptrend, a very robust demand may be needed especially through exports considering the current seasonal hog herd sizes and slaughter numbers at records, an analysts stated.
On Tuesday however, the futures have been heavily dominated by bears indicating a drop by at least 2% in its recent trades. The futures experienced a heavy technical sell-off as it entered a reversal from its recent highs.
“We got to the level where we made new highs and there was a vacuum below us,” Analysts Ted Seifried told reports. “Today’s high will be a big resistance target going forward. We’ll probably see some follow-through (selling) tomorrow.”
In other Livestock futures updates, Cattle Futures experienced a decline on Monday after trading bullishly in the preceding week. Live Cattle October Deliveries at the CME dropped 1% to $1.11725 per pound.
As for the physical cattle in the market, the livestock traded an average of $111 for 100 pounds live and $175 dressed in the preceding week. Cash Cattle prices have been heavily observed since September in where it started to rise. However, analysts are uncertain if such trend will continue longer or not, especially in the market of large beef production.
A herd of live cattles.
For the Meatpacker Slaughter data, the figures indicated a 622,000 total slaughter which was down from last week’s numbers. In a year over year basis, the data is just the same.
“Feeders all day were struggling to get up and over some resistance and failed to do that, and some technical selling came in toward the end and pushed us down,” Seifried stated.
It can be seen above that the Lean Hog futures did open the week with a strong high. However, it fell drastically in the following period. It is specifically a -2.51% drop to -1.600. Had it maintain enough bulls, it could’ve reached the 64 price range.
As for its Relative Strength Index, the indicator mirrored the same performance above. It declined to 55.26.
Lastly, its Coppock Curve declined in its recent performance. At the positive region, it specifically traded at 12.13 which would recommend a buy for the futures.
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