LEAN HOGS

Cash hog prices, again, were up .50 yesterday on day-two of the winter storm. The blizzard has really disrupted hog movement and slaughter. The kill from Tuesday was revised down by another 10,000, to only 305,000 with yesterday’s kill pegged at 395,000. Packer processing margins remain profitable. This means they’ll gear up for a large, if not huge Saturday kill effort. The Saturday kill could approach 300,000. The cutout was lower last night but overall the cutout should be higher by Friday’s close. We’re moving into the long side of the summer hogs and spending a little money on Feb 66 calls to hold into expiration. The sharp change in the direction of the dollar is friendly toward pork.

Still short april & june
Dewey