The U.S. hog market, with cash prices hovering just above 16-year lows, is facing a historic and very bullish dramatic change in fundamentals. Four new cases of ASF were reported in China since yesterday. One case was in Anhui province and this was the largest pig farm thus far impacted. Anhui province now has 4 out of the 13 cases reported. This province, about the same size in square miles as IA, holds 15 million pigs. IA, by far holds the largest pig population in the U.S. at over 21 million. Putting this into perspective, this disease is spreading rapidly in an area about the size of IA with 15 million pigs. China is a pork importing country. Every pig culled represents a carcass that will be imported from the EU or U.S. The option market makers already know what is likely to happen. Try buying a few June hog calls that are $30 out of the money. You cant get the order filled. If June hogs gap higher today the rocket has cleared the platform and headed for the atmosphere.

Have orders in to buy April @ 69.75 and July @ 79.25, however I don't believe they will be filled!

Dewey