Earlier today, I suggested to my subscribers and brokerage clients to buy December cattle and sell August lean hogs as a spread. Here is what I specifically suggested. And note the time.

SPECIAL EMAIL ALERT!

Buy (1) December cattle and sell (1) August lean hog at the market. December cattle re 12 higher at $112.65 but August hogs 10 lower at $88.37. No stop for now. But once I see cutout values in about an hour I will either add to this trade or exit it by the close.

The time is 9:51 a.m. Chicago

The fill on the trade above was; Bought (1) Dec. cattle $112.55-sold (1) August hog $88.35. The last as I type furiously away is $113.40 for December cattle and $86.67 for the hogs.

When cutout values were announced a few minutes ago by the USDA, showing boxed beef up a whopping $2.27 but pork carcass down $.07 along with a $2.40 decline with the all-important loins I suggested adding to long cattle and short hogs.

Based on what I am witnessing right now, cattle may have carved out an important long term low the past few days while the oinkers are on the cusp of a nasty, nasty break.

Dewey