Cash was lower yesterday and will likely come in soft/lower again today. For reference, the CME lean hog index stands clear up at 7915, or $12 higher than the Aug settlement. Oct hogs reside $27 under the cash index with Dec a massive $32 under. Im changing my sentiment this morning based upon three factors. First, Im hearing that quietly, behind the scenes, the administration is making progress in talks with Mexico. Second, weights have dropped and theyre expected to continue declining. And third, next week will be a short kill with Smithfield down late in the week for software upgrades. My conclusion is that current sharp discounts, in the middle of July, are simply overdone. Recommend lightening up on hedged positons or using buy stops.

Still have Long position in Aug & Oct and not feeling nearly as good about it as I did when I went in!! Yesterday I made a nice day trade in Oct and today made an even better one in Dec. Yesterday from the long side and today from the short side.
Dewey