Lean hog futures prices continue to bleed lower
December lean hog futures on Wednesday hit another contract low. The lean hog futures market saw more technical selling pressure. The near-term technical posture remains firmly in favor of the bears. Cash hog prices and the CME cash index continue to trend lower. The latest CME lean hog index is down $0.76 to $64.99. Thursday’s projected CME index price is down $1.06 at $63.93. The national direct five-day rolling average cash hog price quote for today is $50.55. The USDA noon pork report today showed cutout value was down $0.70 at $71.73, led by losses in bellies. Movement at midday was 183.89 loads. December lean hog futures see the technical posture as firmly bearish amid a price downtrend in place on the daily chart. However, the market is still short-term oversold, basis the Relative Strength Index. The next upside price objective for the hog bulls is to close December futures prices above solid chart resistance at $62.50. The next downside price objective for the bears is closing prices below solid technical support at $55.00. First resistance is seen at this week’s high of $60.475 and then at $62.275. First support is seen at today’s contract low of $57.10 and then at $56.00.
Pork Industry and related news
USDA reported US weekly pork export net sales of 37,300 tons were down 12% for the week but 5% above the four-week average. Mexico accounted for roughly 45% of sales and 47% of shipments, reinforcing its importance across multiple US agricultural markets.
US beef export sales of 11,000 tons were unchanged from the previous week but 29% below the four-week average. China recorded a net reduction of 600 tons, while South Korea and Japan remained the leading buyers. Beef shipments improved to 13,400 tons, providing a better immediate movement signal than the bookings suggested.
December lean hog futures--$55.00 to $58.00 and with a sideways-lower bias
December soybean meal futures--$310.00 to $330.00, and a sideways-lower bias
December corn futures--$4.30 to $5.60 and a sideways-lower bias
Latest analytical daily charts lean hog, soybean meal and corn futures