Yesterday the early call in cash hogs suggested prices paid would be down $1.50. However, the late report confirmed that cash hog prices were actually steady to down .50. The cutout was slightly higher, quoted up .49. We’re still in a bubble of hog supplies. My sources are not giving any clues as to when butcher hog supplies are going to taper off. One hint that it might be close is the firming performance of the Apr/Jun spread. We’re watching this spread closely, again, searching for clues. In the meantime, we’re content to continue nibbling at summer call options. We’re convinced that the strong pork fundamentals that drove prices higher in the first quarter remain intact. Open interest on yesterday’s plunge in futures was unchanged. This indicates that for every aggressive seller willing to position and add to short positions is a long term bullish trader willing to take on a new long position at a lower price level.

My thoughts on hogs lately haven't been very accurate (this is an understatement)! Cash & product prices are weak again today.
DH, Thanks for your continued work on the hog model.

Dewey