LEAN HOGS:

Cash hog prices were up $2.00 yesterday and theyre going to be higher today, perhaps another $2.00. Hurricane Florence is huge and actually much more powerful than what I realized 24 hours ago. Smithfield will kill and process hogs today and thats it, theyll be down for the remainder of the week. Operations next week, of course, will depend upon the level of flooding, damage and power outages that occur. Perhaps some animals will be shipped west for processing but this is going to be a major disruption to processing. While privately I worry about hogs getting backed up thats not going to be the concern in the near term. Look for cash to remain strong and look for product to likely find legs and jump higher. Futures volume was very active yesterday at over 95,000. This is the largest daily volume since the market was pounding into fresh lows in the middle of July. Open interest was down hard in the Oct as shorts run for cover in the face of exploding cash bids. Given the extremely bullish backdrop of the ASF situation that is currently unfolding in China, given any further pullback in futures wed strongly recommend adding to current bullish positions.

I have been adding to longs, however this morning I got to office late so I won't be doing anything today!
Dewey