The lean hog market extended its major (long-term) uptrend to a high of $117.60 during May before the nearby June contract closed at $117.25. However, June has been losing ground to the August issue of late, indicating some commercial pressure during the latter stages of this pattern. Monthly stochsticcs are approaching 100%, and indicator we may need to handle the market with caution, particularly with support at its 4-month low all the way back at $69.325. Fundamentally lean hogs remain long-term bullish, as indicated by the August-October and October-December futures spreads. This should allow the market to continue to extend Wave 5 of its major pattern over the coming months.
