Hog futures closed higher yesterday on moderate volume of 37,600 with open interest sharply lower in the Dec with a slight build in total open interest. Cash was mostly .50 lower and cutout was sharply lower, down $1.87. Weekly pork exports sales were lousy, down 21% from the 4-week average. China was in for a small amount. Export shipments were good, up 17% from the 4-week average but no pork was shipped to China last week. Typically China has not been in our market, certainly not in our market in a big way. We continue to hear from multiple sources that serious problems are developing with back logged hog supplies. The information indicates that pork is not moving fast enough and that cutbacks in the kills are being planned. The board is not anticipating anything severe so if/when it develops it will cause a severe drop in futures.

Thanks DH for your info. I don't have anything to cushion my drawdown, however I still think futures are going down! So far, the day is helping but the day is not over!

Dewey