Cash hog prices were down .50 yesterday but the cutout was higher, quoted up .64 at $79.12. The hog market is wading through a period of over-supply relative to early spring demand. It’s not expected to last. Demand, strong demand for U.S. pork will eventually drive this market higher. This is been the case since last fall when prices held much better than everyone expected. The cold storage figures confirm my comments and outlook toward demand. Export data confirms strong, powerful strong demand for U.S. pork. Another bird flu outbreak, this one in the state of Georgia will continue to cause problems in the poultry industry. This will continue to benefit pork. Futures have collapsed in wild trade the past two sessions. Because the market is lower and my outlook is higher, we’re utilizing call options instead of futures to fame out a longer term bullish position.