Cash is called lower again today after another bloodletting yesterday. Cutout was stable so improved packer processing margins is coming right out of the producers pockets. The latest CME lean hog index stands at 5828 with Aug futures going off the board today at noon. Futures displayed another sharp rally yesterday which is a selling opportunity. The weekly kill is going to swell rather dramatically which is necessary to get hogs cleaned up. This weeks kill is projected at 2.449 million, or up 4.7% compared to last year. Short covering was the feature in futures yesterday with open interest dropping by 800 cars. Volume on the rally was not heavy at 52,000. Once again, recommend working orders to sell futures on a nice rally.

I am now long Oct, April, and June. I have had two terrible trades back to back, it is now time for a good one!

Dewey