Although pork cutout's snapback late Tuesday and ideas of a seasonal reduction in hog kills offered a glimmer of hope for market bulls, they were dismayed by shrinking estimated packer profit margins that could result in more reports of weaker bids on Thursday, a trader said.

June and July hogs melted after the June contract overshot last Friday's chart gap on the open. And, July fell below 78.00- and 77.50-cent psychological support levels in part because of aggressive June/July bull and spreading.

Some bullish hog players on Thursday may find solace in lean hogs' recent sell-off that will help the June and July months recover somewhat from their overbought Relative Strength Index conditions. However, both contracts now have to close chart gaps created by Wednesday's losses.

Source: FXSTREET.com