A high pressure ridge could be building back into the Midwest.
The hog market may have seen a top to its current rally.
On Tuesday, this analyst thinks the market will find support being close to the first GTE USDA rating.
It would appear that the bull rally that is over a month long is now feeding from its own enthusiasm, analyst Rich Nelson says.
Once corn hears when the first GTE rating will be released, we can expect at least some pre-buying of that report expecting a low starting number.
Anywhere in the +$77 range via summer futures is a valid price to work from.
The days of arguing that hog futures are sharply underpriced are over.
Our in-house pricing model suggests this market is on the path to hit $8.84 for the early-summer low on the November contract before a summer bounce.
Exports are running 20% higher than last year while beef output is only 2.9% higher than 2016.
In the short-term, the trade will react to Monday’s weather maps as well as what is expected for the planting pace.