LEAN HOGS

Lean hogs are fading today in similar fashion to yesterday’s action. Late yesterday the board recovered well off the session lows and posted a mixed close. Weakness in the bull spreads is a warning sign of lower prices, an indication that the downtrend will remain intact. Seasonally were expecting a low in hog futures at some point during May. We are hedged and positioned from the short side in futures while not really involved from a speculate standpoint. Major support can be expected approaching 7700 in the June. If this level is penetrated, as we suspect it will, a side toward 7550 is in the cards.

Still short, got out of some yesterday and some more today still have plenty left!
Dewey