Cash hog prices traded fully steady on Monday. The cutout was calculated, up .81 at $85.46. Most cuts were lightly tested. Hams remain offered and barely steady, bellies firm with loins fully steady and butts firm to higher. Bellies, on the USDA calculation, posted a fresh 52-week high. Hog futures volume from Friday’s firm/higher session was reported at 32,700. Excluding the open interest decline from the expired Feb contract, hog open interest on Friday increased by just over 2,000 cars. The uptrend remains intact and look for upside follow through in futures today. The CME lean hog index continues to crank higher, last quoted at 7707, up .41 and a new high. April futures, at 7077, appear way undervalued in my opinion as do the summer hog contracts, trading only 225 over the cash.

The morning update shows- Cash hogs steady to mixed. Hams are soft to lower, and bellies remain firm with loins and butts firm to higher. Hog slaughter pegged at 442000, last week 437000

Dewey