Lean hog futures rallied out of the gate on Monday, with deferred contracts posting fresh contract highs. April hogs traded $1.47 higher to close at $96.62 per cwt. Prices had traded higher earlier in the session but ended the day just above mid-range. June summer hogs traded $1.77 higher to settle at $109.70 after posting fresh contract highs just above $110.

Monday’s surge came after the hog market experienced pressure leading into the weekend. Macro commodity selling spilled over into the hog market on Friday, though prices were overdue for some pressure after hitting fresh contract highs during the week.

Fund buying continued in the hog market through the week ending Jan. 27. Money managers were net buyers of 15,361 lean hog contracts during the period. The buying was driven by funds adding to their long position.

April hogs have had no meaningful correction since mid-November. The substantially large long position built up by the funds does put the market at risk of profit-taking for the short term. This week’s data suggests that a correction could welcome buyers rather than deter them.

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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.