Instead of coming in lower as predicted in the early report, cash hog prices were fully steady yesterday. The cutout edged higher with the value of the carcass the highest since October 21st of 2014. Ribs have softened as seasonal demand has peaked but all other pork cuts appear to be in good shape. Weekly hog slaughter, projected to be 1.859 million, will be up less than 2% from last year. Open interest continues to pour into the hogs with specs willing buyers and produces willing hedgers. On decent volume reported at 58,900 open interest surged upward by nearly 5,800 cars. The next resistance on the weekly chart comes in around 9350. We moved out of all long July calls yesterday and recommend liquidating any remaining Aug calls today. There’s no sign of a top but the timing is right for a top any minute.

I am still short plenty of Aug hogs. I tried selling more yesterday and again today but not filled on any! Would much rather see them go down than get orders filled!

Dewey