Pork / Hog Prices Begin Summer Downtrend

Cash and Wholesale Pork / Hogs have reached their seasonal highs.

The hog futures charts are now showing weakness. Particularly August and October contracts.

Here is an example of the July Lean Hogs Futures chart that is just starting to round down.

  • Horizontal seasonal top
  • Price is now setting lower highs
  • The DMI trend indicator just turned bearish today. Foretells a bear trend is beginning.
  • The deferred contracts, August and October, are both trading well below their 20 day moving averges.
  • Anticipate the July contract to close below its 20 day moving average very soon. Its near 81.40. About a dollar lower than current price.
  • The quarterly Hogs & Pigs Reportis due the end of the month and funds are beginning to liquidate their long hog positions ahead of the record setting pork production just around the corner and ahead of the report.
  • The time is 11:45 am Central. Hog futures market closes for the week in 1 hr 15 minutes.

    Second chart below is August Contract Target in July/August.
    DMI trend Bearish

  • Next week, watch for price breakdown below 77.60 in the August contract.