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Hogs by Dennis Smith

Cash hog prices were lower yesterday and theyre expected to remain under pressure today. Packers are already booked for the entire week. The weekly kill is pegged at 2.461 million pigs which is down about 4.5% from last week. Some plants will be taking down time late this week ahead of the holiday. Disruptions in the kill will then occur over the next couple of weeks. Yesterdays kill was pegged at 467,000, bumping up against the record high daily slaughter of just over 468,000. The cutout was down $1.71. Weakness continues to surface in the hams and bellies. Futures surged higher early yesterday with round after round of buy stops elected before prices collapsed. Volume was not heavy at 32,000 and open interest was lower, declining by just over 3,000 cars. Consider that the tone is set for downside follow through ahead of the upcoming quarterly hog & pig report. The report will be issued in tandem with a monthly cold storage report and cattle-on-feed report. This will occur during trading Friday at 11:00 Chicago time. The livestock markets will then close early at 12:15. Were bearish and holding short positions and a host of hedges through the summer months. Some of our shorts, however, did get picked off on the surge higher yesterday.

Dennis is still bearish! Hogs will not go down for ever as we all know. When will they turn??? The pig report may give us an idea!

Dewey

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Hogs by Dennis Smith
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