December lean hog futures dropped $0.35 to $68.025, continuing a bearish trend driven by technical selling pressure. The CME lean hog index fell $1.10 to $76.51, with Wednesday’s projected index down another $0.57 to $75.94. Cash hog prices also declined, with the national direct five-day average at $71.89. The USDA’s noon pork report showed a slight uptick in cutout value, up $0.08 to $85.05, led by gains in ribs and bellies, with movement at 163.02 loads.
Technically, December lean hog futures remain in a downtrend, with the next upside target at $72.00 and the downside objective at $65.00. Resistance is seen at $69.00 and $70.00, while support holds at $67.325 and $66.00. Analysts advise getting current with feed coverage and preparing for purchases if harvest pressure creates value opportunities.
December live cattle futures fell $0.225 to $226.375, despite earlier gains to a two-month high. November feeder cattle lost $0.075 to $341.025, also retracing from a three-month high. The USDA reported no cash cattle trading this week, though last week’s average rose 34 cents to $220.14. Boxed beef prices increased, with Choice grade up $0.98 to $376.54 and Select grade up $1.55 to $355.68.
Technically, live cattle and feeder bulls maintain the near-term advantage, with resistance at $229.425 and $350.00, respectively. Support levels are at $218.875 for live cattle and $325.00 for feeders. Analysts recommend monitoring feed needs closely, as producers are currently hand-to-mouth for corn and soymeal.