Lean hog futures just keep on marching higher in the face of huge production, stable cash and firm product. The action is certainly impressive if not unbelievable from a long term fundamental perspective. This week’s weekly kill is projected to be over 2.5 million hogs, surpassing what we know to be capacity. Two plants killed on Sunday, boosting the Monday total to 460,000, allowing for capacity to be exceeded. Margins are profitable. Futures are now, technically, in a verified uptrend. We’re holding Dec puts and we’ll be satisfied to wait it out. Hopefully, for the sake of the hog producer, this market has bottomed. Hope is a good thing but generally not useful when applied to commodity trading. We won’t be surprised if/when the market collapses.

I believe Itz has this market figured out! When everyone starts getting on the north-bound it goes South! or vice-versa.

Dewey