Another market that appears impressive is front month December lean hog futures that are 72 higher with the February contract up 12 points. The spread difference between the two contracts is around the $1.30 to $1.40 the February. Should the spread narrow to less than $1.00 to the February, it represents a major breakout. In fact, the anything less than $1.00 means the spread is almost at a one year high.

Historically speaking, when the bull spreads for any market begin to “kick in” it means one of several scenarios could surface. One, the spreads will continue to work. Two, the flat prices is poised to rally. Three, the market is anticipating some renewed demand. Will any of those three scenario kick in here today? Only time will tell. But I do favor greatly the bull hogs spreads.