Today is Jerome Powell day. The new Chairman of the Federal Reserve takes the reigns today. His statements are bullish on the U.S. and global economy which are friendly/bullish toward lean hog prices moving forward. Given a normal seasonal decline in hog numbers, into this buzz saw of an economy, and we should experience a significant and impressive rally in hog prices this spring. The primal cut most likely impacted would be fresh bellies. Granted, frozen belly stocks are substantially larger than last year but theyre down 12% from the 5-year average. Hog futures pulled back yesterday with most contracts posting outside day lower closes. Look for major support in the June at 8100. Well be buying the market on a test of this support as well as eye-balling bullish option strategies. Weve lightened the load on hedges. It appears a conclusion on the NAFTA negotiation talks wont be reached, perhaps, until sometime next year.
Starting to add June longs back on, unfortunately still have all my April!