LEAN HOGS

Remember that livestock are trading new hours with the opening bell at 8:30 Chicago time and the close at 1:05. These are the hours every day. Hogs spent the entire session yesterday pulling back away from resistance only to jump into the close and post another settlement just underneath key resistance. Most likely today is the day that resistance is taken out, in our opinion. We’ll be purchasing just out of the money June hog calls on the open. Cash was quoted lower to sharply lower yesterday on the early report only to be quoted steady to higher on the late cash report. The cutout was higher. The weekly kill is projected to be 2.239 million hogs, or up 1% from both last week and last year. If, by chance, the actual kill comes in below this projection, it would be bullish. We suspect there have been disease problems in the late fall/early winter that have contributed to a smaller winter pig crop than currently realized.

So far I have only been able to buy some Aug this morning but the day is not over!
Dewey