Cash hog prices remain on the defensive, quoted down .50 to $1.00 yesterday. The cutout was up .41, quoted at $88.89 but well off the recent summer highs. Just too many hogs, too much production, even in the heart of summer to sponsor a quick and decisive move higher in cash and cutout. It simply has not occurred as we speculated with inexpensive Aug calls that it would. Having said that, Aug futures on Thursday and Friday of last week actually met our measurement downside target of 7640. Most thought us crazy when we put that one out. Futures have since closed higher for two consecutive sessions. Is something brewing that will sponsor a change in trend? Sadly, it appears that no there is nothing to sponsor a significant late summer rally. This week’s kill is projected to be 2.170 million, or up 2.2% compared to the same week last year. Alarmingly, hams, the bedrock of the pork carcass, appear to be tipping over. Today’s highs may be of great importance in the Oct contract.

Still Long & Wrong, Bt some Oct at 63.25 with more orders at 63.15 for this morning. Most analysts are predicting lower for Oct, 60.00 to be exact! They may be correct or Not!
Dewey