Technical and/or maybe it was helped along by by emotions created by the packers horsing around with the component on Friday's kill be over-loading it with cheaper negotiated hogs.

I expect the number of negotiated hogs in the kill mix will have dropped significantly on Monday, setting the stage for a rally in the CME Lean Hog Index.

Today I had 19-calendar spread orders filled. I hope that will cushion the hit my margin will take from the weakness in the futures today. I probably should give up trading the outrights and just concentrate on the calendar spreads but I have this feel that world pork supplies are way down and at some point there will be a major rally. If the CME Lean Hog Index shows a little strength this week, it will most likely confirm that the seasonality low has now been posted and we are still in the search for the next seasonality high. It has a strong tendency to show up about the first of July.

We may have a long, volatile search finding the next seasonality high.

Best wishes,

D.H.