Even though Lean Hogs traded on the light side throughout Monday's session, it may not be a true indictor of the overall outlook for futures. At least for Monday's trade, June futures closed a great deal better than the summer months. Much of the positive trade may be attributed to firming cash hog prices and follow through short covering from Friday's fund driven buying. Cash hogs are called steady to better for Tuesday. Wholesale pork carcass prices closed up a stout $1.02 providing support for Tuesday's opening. June lean hog futures have key technical support at 7315 with a chart gap above in the daily charts from 7445 up to 7505.
June Live Cattle found short term Moving Average resistance at 9200 and ultimately breeched last week's price low of 9140, now to be used as new resistance. Within the daily June chart there remains a chart gap from 9045 down to 8965 that may attract futures lower. Index funds were noted spreaders rolling long June positions to the August, thus weakening the June futures. Thoughts are, once projected demand for Mother's Day and Memorial Day are filled, demand for beef is expected to ease well into the first half of the month of June a and may pass on this weakness into the futures.
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