December Lean Hog futures closed sharply lower today, falling back below the 200-day moving average and marking the lowest close since May 23rd. The contract is now $12.50 off its September 26th highs. The Relative Strength Index (RSI) is now at 30%, which indicates an oversold market condition but is not yet at an extreme, suggesting potential for further downside before a major long-term trend line support is met at 74.30. Fundamentally, average hog weights continued higher this week at 291.6 pounds, which is up from 285.8 pounds last year and suggests an increased production and a backlog in marketings. Compounding this, pork cutout values continue to fall, down about $3 from last week, raising concerns about domestic demand. Increased supply paired with lower demand is putting significant pressure on the Lean Hog futures market.