Cash was lower yesterday and Id expect another round of weakness today. I noticed the lower cash on Monday was also accompanied with very active hog receipts. This weeks kill should challenge 2.5 million pigs. The cutout backed off by .53 which is certainly no big deal. Packer margins actually improved into new recent highs for the 4th quarter. Futures are expected to continue their grind lower and away from the contract highs of a couple of weeks ago. Dec closed just below their 40-day moving average yesterday. Eventually look for Feb to do the same. It will be interesting to watch the Dec/Feb spread over the next couple of days. Im expecting the spread to bottom. The summer contracts are hanging out at their contract highs. Producers, if youve already got some hedges on the book (in the summer hogs), consider adding to these using a put/call combo to establish a very attractive marketing window. Look for a two-sided trade likely followed with a lower close.

I can't believe I am finally out of all the ZZZ's, it feels Great!! I had so many! Still have G,J, & M and I feel the pressure to get out of all but don't have any orders in!

Good trades to all!

Dewey