Pig outlook: Early signs of lean hog futures market bottom, US & Canada swine industries experiencing losses

Lean hog futures price action this week may be forming a potential “V” bottom reversal on the daily price chart. Still, with summer-month contracts back at premiums to the cash index the cash market must strengthen to build sustained buyer interest in futures. The latest official quote for the CME lean hog index is $80.08. Recent wholesale pork price strength is encouraging the bulls amid a likely increase in US consumer demand for pork during the grilling season. The seasonal wholesale pork price strength has historically persisted into mid-July. It’s probable that the cash hog and futures markets have put in seasonal price bottoms and that prices will work sideways to higher in the coming weeks.