Good morning. Someone is after the Dec hogs early today, driving futures sharply higher and testing key resistance which I'll define as 9600. We're bullish and long Dec futures and waiting for a close above 9600 to signal a test of major resistance at 9900. I'm bullish the Dec hogs because of the sharp discount and due to the fact that Oct hogs look to expire strong next week. Look for this contract to move up and fill a gap on the chart at 11050. I've been stating that if this happens.....I want to be long Dec hogs. Some of the retail product is turning soft but demand keeps coming and thus far has prevented a sharp fall in the carcass. Packer processing margins are highly profitable. The key appears to be the fact that hog numbers are not increasing substantially as they normally do at this time of year.

I have sold a few more hogs this morning
Dewey