Cash hog prices held steady yesterday but that’s not likely to continue into next week with slaughter now running full bore. If the product wavers and drops hard, cash bids will follow. I’d be extremely surprised if packers let their margins slip in this environment. More likely they will crack the cash market severely as slaughter capacity is challenged. Weekly pork export sales were just “OK” with nothing really bullish in that China was not in the U.S. pork market last week. The pattern in lean hog futures has been pretty well defined. The buyers (bottom pickers and short covering) have been involved early, say in the first two hours of trade with sellers then entering the fray and driving prices lower. Look for a similar pattern today. All contracts (summers included) are vulnerable to fresh contract lows in my opinion.

Will hogs turn like cattle?? I believe they will but not quite yet! For that reason I have been selling more of everything (Z,G, &J). I know we are over due for a rally but I doubt that will happen this week (famous last words)!!

Dewey