Lean hog futures posted a considerable bounce over the past week on technical buying. June lean hogs traded $1.70 higher on Tuesday, surging to $110 per cwt. Prices have retraced about 75 percent of their losses since finding support above $104. Much of that selloff was driven by speculative profit-taking after the rally stalled out the first week of February. Prices could still retest their contract highs before making another move lower.

Cash hog prices have been steadily rising over the past month. The CME Lean Hog Index rose to $88.35 this week, up $8 since mid-January. Buyers have been fairly aggressive moving through February to secure supplies. Wholesale pork values have been stagnant over the past month and a half, likely due to a fair amount of pork hitting the market.

Pork in cold storage at the end of January totaled 410 million pounds, up 0.8 percent year-over-year, according to the USDA on Tuesday. Supplies rose above year-ago levels for the first time since April 2023.

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