point that most of my trading is now spreads. Because of the seasonal pattern that hog production and pork demand follows, I am finding that I don't lose much of the profit potential and a lot of the risk is taken out.

Relative to the hog cycle, it is beginning to appear that producers may not have expanded quite as much as the H&P report projected. It is possible that the high kill earlier in the spring was actually producers liquidating a portion of their inventory of market hogs. This has made them quite current in their shipments. Today the 6-day moving average carcass weight was steady at 213.21#. That is down -3.40# from the same day last year. Packers were beating the bushes to find hogs to meet the holiday demand surge but the lower-than-expected Purchase Index this morning may be suggesting that packers will be taking some off their bids for the next few weeks. That happens more often than not this time of the year.

It looks like being short just about any month is working well today, Dewey.

Best wishes,

dhm

What trading platform are you using now, Dewey? I am using Cunningham's T-4 and I find it quite good for spread trading.