Instead of $1.50 lower as in the early report yesterday the late cash hog report confirmed that prices were fully steady to up .50. This marks the third consecutive day that cash has posted strength after six consecutive weeks of lower trade. The tone of the cash market has changed as Aug hogs went off the board. Futures ripped higher on Monday led by the front month Oct. This contract penetrated several layers of resistance yesterday. Volume in hog futures, at 35,600, was 10,000 larger than live cattle volume. Open interest was lower, suggesting short covering. The technical action was strong enough to indicate a rally will likely continue to at least 6400. We’re anticipating this short covering rally to be sharp and swift with the downtrend likely to resume as record large production comes into play this fall.

Still Long but no longer Wrong!
Dewey