The key reversal for June hogs is a bullish technical development, but the premium to the cash market is a limiting force.
Read MoreThe large discount of June to the cash is a factor which may continue to support.
Read MoreThe longer-term fundamentals are still supportive as beef production continues to tighten and weights remain much lower than normal.
Read MoreApril hogs as of February 8th were holding a premium of 10.23 to the cash market as compared with a premium of 15.13 last year but the 5-year average premium is just 6.00.
Read MoreExport sales are impressive and remain on a record pace this year, and the expected shift lower in production for the second quarter is supportive.
Read MoreWhile the futures market is pricing in a much stronger than normal seasonal advance for June hogs, the cash fundamentals do not appear to be strong enough to support this move.
Read MoreFebruary hog resistance is at 82.20, with key support back at 80.00 and then 78.90. April hog resistance is at 87.37, with 85.65 and 84.75 as support.
Read MoreWe could see some back and fill action after the big range-up day on Thursday.
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