LEAN HOGS
Lean hog futures staged a stumble and trip performance yesterday which was a disappointment from a bullish trader perspective. Still, despite the lousy action, there was no real technical damage sustained. The Feb opened lower today but has since recovered to the positive. The early buying has been led by the December hog contract. Export data confirmed that Oct pork exports were up 7%. This is solid and this type of export news is expected to continue in the months ahead. What needs to happen to spur a meaningful rally is a reduction in slaughter due to smaller hog numbers. Thus far it’s not happened. This week’s kill is projected to be 2.421 million. If the actual were to come in well below 2.4 million, this would be a bullish indication. Technically, a close in the Feb hogs above 6000 would be a bullish indicator.

DH, I still haven't folded, and am still long on all fronts!
Dewey