Cash was called lower early yesterday but came in fully steady. Nice try by the packer to purchase pigs at lower money but it did not work. The cutout soared, calculated up $2.18 at $87.26. Two weeks ago we were talking about the cutout likely leaving the $75.00 area in the dust and here we are with the pork carcass now above $87.00. Folks, the hog slaughter has barely dropped off. No, up to this point this is not a supply issue but a surge in seasonal demand issue. Assuming that butcher hog numbers eventually WILL drop off, we visualize a substantial move upward, yet, in lean hog futures. There’s a seasonal low due early next week.

Good morning DH and thanks for info.
DH, the June futures contract treated me outstanding! I closed the balance of June out yesterday and now have some July. I have a feeling I may have jumped the gun a little early! I plan on adding more if they get down to 77.10 and they just might before they start back up. I believe we usually get a run-up in June before the 4th holiday.

I have been watching the cattle and have been tempted but will now hold off as I have started another hog trade.

Good trading to everyone!

Dewey