LEAN HOGS:
Where there’s smoke there’s usually fire. There’s a rumor that 50,000 sows are infected with PEDv in OK and NC. Hanor and Seaboard Farms are the production facilities rumored to be infected. This caused a flurry of buying yesterday, initially in calls and then in futures. We have no confirmation and likely will never get confirmation. However, we believe there is likely real substance to the talk. There’s concern about widespread PEDv in Mexico and continued problems with PRRS in the U.S. herd. Futures volume was active yesterday at 53,000 while the net change in open interest was near zero. While I have no specific buy recommendation look for futures to likely turn higher, hold, and eventually move substantially higher into the springtime seasonal timeframe.

Hope Dennis is correct in his thoughts on the market!
Dewey