Hogs by Dennis Smith

Cash was mostly .50 higher yesterday with no real outlook regarding todays cash tone. Its easy to argue for soft/lower cash in my opinion. It appears that any push in the kill will drive the product lower to sharply lower. Hams are weak and butts are expected to see recent torrid export demand peak. Bellies remain stellar with loins in good shape mostly because of low prices. April hogs posted an inside day on Monday but the contract looks poised to test support levels, in my opinion. Consider support just underneath the market at 7300 and again at 7200. Major support is represented by 7100. On a short term break we hope to purchase calls. Our outlook is for improving spring time demand for U.S. pork in tandem with lower butcher hog supplies on a seasonal basis.

Bought more July hogs today!