LEAN HOGS

April hogs traded lower to sharply lower early in the yesterday’s session only to stage a full recovery, swing higher and close up 57 points. On the fourth day down since breaking out to the upside, buyers resurfaced. Cash was slightly lower on large receipts with product higher. Packer margins improved. There will come a point in time in which hog numbers begin really dropping off and packers will be forced to scramble for hogs and their margins will be trimmed dramatically. This likely will coincide with an impressive upside move in futures. We took profits on long June hogs yesterday but we’ll look to buy a setback in the April today. Basically, if the trend remains intact we’re expecting the April to lead all advances, in tandem with rising cash. Open interest increased in hogs yesterday on the positive performance.

I am not in snyc with Dennis at this time. I am short the JJJ's, MMM's, and the QQQ's! I had an order in to sell more MMM's this morning at 84.00 but just canceled order. Only 5 more days of trading until the pig report!
Dewey