Hogs traded in a narrow range yesterday and watching the screen it appeared to be a light volume back and fill session. However, the CME reports that it was a large volume session of just over 57,000 contracts with open interest edging down less than 1,000 cars. Futures, indeed, appear to be coiling for the next move which is likely to be higher in my opinion. Cash was higher yesterday and should be higher into next week. The first heat wave of the summer will occur this weekend and into most of next week. Moving hogs will be difficult and weights will drop. The cutout was up .81 yesterday with a stable product situation so far this week. Cutout values, by the way, are higher than this time last year and higher than this time in 2015. Current record high production is slightly above last year and substantially higher than two years ago. Demand for pork continues to march onward. Weekly export sales for last week were up 40% from the 4-week average. Mexico took 70% of this pork. My sources have been indicating sluggish export business in hams which does not appear to be accurate. Actual shipments were down 13% from the 4-week average.

Itz, I follow Dennis Smith and I have noticed he keeps up with the O/I. Yesterday it looked like maybe the longs in July were moving into fall and winter plus the August.
August increased 3175 in one day and July Decreased 5357 in one day!