Cash is called steady with packers already working on next week. The numbers are tapering off with the weekly kill projected at 2.351 million pigs, down about 15,000 from last week but still up 3.7% from last year. Will the product find traction and give packers a reason to bid more aggressively for the hogs? New open interest is pouring into the hog futures market. Volume yesterday was moderate at 49,000 but open interest soared, increased by nearly 6,000 cars. It appears that both bullish and bearish traders are finding reasons to step into the market. The June is now trading about $10 over the cash after trading as wide as $22 over a couple weeks ago (April 19th). The seasonal tendencies suggest that futures should rally, driven by rising cash and cutout. The possible bottom in the Jun/Jly, and Jun/Aug bull spreads was noticeable yesterday. Consider this to possibly be the first sign of health for the hog market.

Dennis is out of hog market and says his next trade will be hedging hogs if they rally enough! Mine will be off-setting if they ever get high enough for me!
Dewey