Packers tied to break the cash hog market yesterday but it clearly did not work. Receipts were not heavy and at the end of the day the cash market was quoted up .50 to .75. The disruption in the kill on Friday and Saturday caused the cutout to jump. The closing pork report showed the cutout up $1.82 at $68.15. The hams and bellies took on a firm tone while retail pork remained mostly steady. The disruption in the kill allowed the retail to hold steady instead of grinding lower. Pork is cheap, very cheap. Lower prices cure low prices. In our opinion the cutout just bottomed, cash has already bottomed and futures are headed higher. Technically it takes a close well above 7800 in the June hogs to signal a move to 8200, filling a gap on the chart. Longer term a test and penetration of the January highs is in store.

DH, I don't know what hogs will do but I have been Long hogs for some time now and the april made me short on money!

Good luck to all trading today!
Dewey