The monthly cold storage report was basically negative toward both hog and cattle prices in our opinion. We witnessed a build in frozen stocks at a time of year that normally sees a draw down in stocks. Total meat in storage is the highest since 2002. There’s nothing bullish about that. Large hog slaughter looks to loom even larger and hog futures are expected to not only remain in their down trend but at some point late this summer or early this fall prices will likely drop hard and fast. We are positioned in Oct puts in the event this occurs.

I am still long in Oct & Dec. I have orders in to buy more, just missed Oct by 5 cents & Dec by 2 cents. I still have all my orders in and will keep them for some time.

Dewey