Lean Hog Futures---Lean hog futures in the February contract settled last Friday in Chicago at 66.15 while currently trading at 64.05 down about 200 points for the trading week still stuck in a 3 week consolidation as I am currently not involved in this market, but I'm looking at a possible short position developing later next week once the chart structure tightens up therefore lowering monetary risk. Hog prices hit a contract high on January 3rd at 66.90 only to finish lower that trading day as a possible spike top may have been created just like the live cattle market, however prices are still trading above their 20 and 100 day moving average telling you that the short-term trend is higher.

If you take a look at the hog daily chart prices have rallied about 40% since late September in an amazing bullish run to the upside as I think prices are very expensive currently and if you are a hog producer I would be hedging significantly at these levels as I just don't know how much more room to run to the upside is possible.

The next major breakdown in prices is around the 62.50 level which could occur in next week's trade so be nimble & keep watching this market as a possible short position is looming.TREND: HIGHER–CHART STRUCTURE: IMPROVING

DH, I haven't posted for awhile as I felt I might mislead some one with my thoughts or position! I am still short the GGG's and JJJ's and not in a small way! I sold some more JJJ's yesterday! Any thing I say on the hogs is to be looked at with caution! For the last 3 months anyone doing the opposite of me, would look like a very smart trader! Next week will be a full slaughter week and it should be large even though Tyson has a plant down Monday for maintenance. I believe their slaughter is about 10000 a day. The weather will be moderating next week and should help the hog run.

Hope you have a good weekend,

Dewey