Pro Farmer Senior Market Analyst Rich Posson says his business-cycle model is higher for lean hog futures into May. "Last week, prices rallied well enough to cause a revision to model-based opinion. And the five-week stochastic is of wide enough spread to consider lingering upside momentum," says Posson. "But it may be a struggle higher for hogs and price objectives of $81.00 to above $85.00 might be high, but the analysis points to a rally."
In the June lean hog futures chart below, Posson uses technical indicators such as stochastic, moving averages, trendlines as well as his business-cycle analysis:
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