Cash is called fully steady with a firm to higher tone possibly developing. Producers are thought to be current and packer processing margins are highly profitable. Perhaps producers with negotiated hogs are becoming a bit more bullish given the outside stories of NAFTA talks and ASF in China. Regardless of the reason, it’s becoming apparent that some packer competition is now surfacing. It’s been a long time coming.

The notable change/improvement in the product comes from the fresh belly market. It appears bellies have finally bottomed and they’re attracting renewed demand. Hams are steady, bellies and trim firm to higher with loins and butts steady and ribs higher. There was very active trade noted in pork butts yesterday pretty much cleaning up any excess supply here.

A ninth case of ASF was reported out of China overnight. Look for this story to continue to unfold and represents an extremely bullish long situation for U.S. hog prices.

BT 5 more June and 5 more July this morning, both at 79.25. I am getting several hogs bought! What makes me nervous is I know for every long I have, there is a short!
Dewey