LEAN HOGS

The comment is coming to you late as we’ve been very busy early today, mostly with the grain market. We thought hogs would open higher today and show some starch given yesterday’s higher cash trade and rising cutout values. However, that’s not been the case thus far with April up 25 to 30 in the early action but all summer and fall contracts are lower. What a major disappointment the hog futures market has become. It must be noted, however, there was large volume of call option trade in June yesterday. Players are laying into calls to have a position in the weeds in case the Chinese story ever takes on bigger life. So far, despite impressive export business, that’s simply not been the case. Weekly pork exports were outstanding. Sales were up 14% from the 4-week average and pork exports were noted at a marketing year high and up 13% from the 4-week average. The pork cutout penetrated the late winter high of $77.10 yesterday but to no fanfare. Futures act, quite frankly, very weak.

I still have been buying hogs today! Dennis has been very negative the hog market (rightfully so)!!
Dewey