LEAN HOGS
We have confirmation that cash prices paid yesterday were up .50 to $1.00 despite the fact that Smithfield’s Midwest operation was shut down due to a computer glitch. We also have confirmation that Smithfield is back in business today with the kill for today estimated at 436,000. The cutout was up .52 yesterday with a firm tone noted in the hams. In other news, overnight it was announced that a new confirmed case of foot and mouth disease was reported in S. Korea. This could develop into a real problem for S. Korea and boost pork exports to that country. Consider this news supportive to lean hog futures today. Feb hogs have gapped higher this morning with resistance well defined at 6180. If this level is taken out a quick move to 6300, possible up to 6400 can be expected. We are bullish hogs and trading from the long side through both calls and outright long futures. Most of our length is located in the June.

Hope this helps a little! I have been busy selling hogs this morning! I have sold 19 G's (one left of order to sell yet), 18 J's and 10 M's all this morning. It has been a very good morning so far!

I have reduced my exposure a lot this morning, still have several GGG's left but probably won't sell any more today!

I do appreciate everyone's comments and posting!
Dewey