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Lean Hog Commentary and Technicals (June)
June lean hog futures gaped lower closing down 1.25 at 76.30, trading in a range of 1.20 for the day. This afternoons Cold Storage report showed pork stocks at 614.9 million pounds, this is up 8% from a year ago, but still 3% below the five-year average. This report didn’t have much in terms of “surprises”. Today’s price action certainly shakes things up on the chart. First support in last week’s reports held from 76.00-76.25, a break below puts the ball in the bears court. First technical resistance comes in from 77.325-77.50. A failure to reclaim ground above this level could lead to some long liquidation and press prices back towards the 74 handle.
Resistance: 77.325-77.50**, 79.75-79.90****, 80.75-81.325***
Support: 76.00-76.25***, 73.95-74.00**
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