By IFCMarkets
Technical setup bullish for lean hog price
The US-China Phase 1 trade agreement went into effect last week as was stipulated – 30 days after signing the deal on January 15. Under the deal, China agreed to buy $32 billion in additional imports of US farm products, including soybeans and pork. Pork prices in China last week neared a record set in 2019 after measures to stop the coronavirus epidemic disrupted the transportation of pigs and the restart of slaughtering plants. Lean hog price has reversed the downtrend which continued after the signing of the phase one US-China trade deal. These are bullish for LHOG. However, U.S Department of Agriculture reported pork shipments to China totaled 13,000 tons in the week ended February 6, down from 16,200 tons shipped a week earlier. Slow shipments to China are a downside risk for LHOG.
| Indicator | VALUE | Signal |
|---|---|---|
| RSI | Neutral | |
| MACD | Buy | |
| Donchian Channel | Buy | |
| MA(200) | Sell | |
| Fractals | Buy | |
| Parabolic SAR | Buy |
| Order | Buy |
| Buy stop | Above 69 |
| Stop loss | Below 62.9 |
Market Analysis provided by IFCMarkets