Cash hog prices were indeed higher yesterday, not lower as indicated on the early report. The late cash report confirmed that cash trade was fully .50 higher. The cutout moved upward into new high territory for the summer season, quoted at $86.81, up .89. Bellies and trimmings are firm to higher, loins are tight with hams mostly steady. Look for additional gains in the pork carcass and look for firm to higher cash hogs for the remainder of this week. For reference, the CME lean hog index recently bottomed and should now grind higher during June. The latest index stands at 7751. Hogs have exploded as the sleeping giant is indeed awake. Look for upside follow through with the July and Aug hogs likely moving upward and testing 9000 fairly soon. Open interest continues to pour into hog futures with total OI up 2,748 from yesterday’s action. Soon it appears total OI in hogs will surpass that of LC, which is unheard of. Sadly, LC is losing many of its customers do the volatility created by the HFT.

Dennis is very bullish the hog market along with many others! I am still selling hogs! I am getting a large position and need a break!!

Dewey