Cash hog prices on Friday were lower, quoted down $1.00 to $2.50. The cutout dropped hard and was quoted down $4.39 on the closing pork report. Weakness in all of the primal cuts was responsible for the cutout declines. While production has edged upward slightly, the pork end users have pulled back. In fact, last week they appeared to completely back out of the pork market. The perception on the back side of the Russian food ban was that there was no longer a reason, a need to chase pork at record high prices. Look for a mixed to lower open today with most selling focused in the Oct and Dec contracts. We moved out of our Dec longs last week, taking a substantial loss. Today, we'll be moving out of June length, scratching the trade or in some cases taking a small loss. We'll have to wait for some stability to return to the pork fundamentals. Look for lower cash again today.

I am not a very smart trader at times and this seems to be one of those times. I am still holding longs in oct & dec however I did make some trades last week all from the short side in the feb contract. Will see what this week brings!
Dewey