LEAN HOGS

Hog futures broke hard yesterday on moderate volume of trade reported at 31,500 with open interest declining by 1,300 cars. Long liquidation was clearly evident with April hog OI dropping by 2,500. The cash was higher and cutout moved up and through the recent high of $77.10. This is my signal that product is catching a bid and headed for $80.00 and higher sooner rather than later. We also noticed a very active trade in hog call options on the hard break yesterday. There was active trade noted in the April hog 69 and 70 calls. We remain bullish and looking to buy the June today for a new long spec positon. Weekly pork exports, for last week were huge at 24,500 MT, up 19% from the 4-week average.

I have been buying June, July, and August this morning for a new long position.

Dewey