Good morning. The aggressive selling in lean hog futures appears to be taking a breather today. The market was flat most of the night but buyers have surfaced this morning the Aug and Oct leading the early advances. Both days this week we've witnessed aggressive selling and sharply lower futures with changes in open interest very small. My conclusion from this is that producer/hedgers have been doing most of the selling, establishing short hedges. I'm not sure how that's going to work out. We've been buying the market the last two days for my speculative traders. Cash remains sloppy but the board is also running sharp discounts. The kill is going to be very light this week, likely the smallest weekly non-holiday kill of the entire year. This should stabilize the product. Processing margins are profitable. The seasonal low timing is not due for a couple of weeks yet, however. Reports overnight confirmed that Japan continues to have real problems with the PED virus. In another account, Zoetis, Inc. hopes to gain approval to sell a PED vaccine by the end of the year. It's another fast-track item meaning they're still testing the product. I remain bullish hog futures and consider the board grossly undervalued given the long term fundamentals

I haven't posted comments by Dennis for sometime. I have been on opposite sides of Dennis lately so his comments like mine should be read with caution!

Thanks for your info DH!
Dewey