In the meantime the cash market continues to soar higher. The CME lean hog index was last quoted at 53.48, up 1.63. Oct is just 300 over. The pork pipeline is getting really cleaned up. Strong product values are expected during the course of the week which in turn will sponsor continued cash strength. The situation in China continues to unfold. One new case was reported. Anhui province which holds the largest number of reported cases, eight, is home to 15 million pigs. The government has launched a level 1 emergency response to control the outbreak. We are now hearing of extreme shortages of pork in certain areas. IMO it’s only a matter of time before they (China) start buying increased quantities of U.S. pork. They will simply remove the tariff.

There’s what appears to be a text book head-and-shoulders bottom formation in the Oct/Dec bull hog spread. This spread projects continued strength in cash hog prices. There’s talk that a NAFTA agreement between the U.S. can Canada will be announced by the end of this week. NAFTA, slaughter disruption, strong cash, profitable margins, strong export demand, and a major disease outbreak in China are all bullish factors. We are trading accordingly.

The above is part of what I received this afternoon from a trader. I did buy several June & July hogs today, will see how they turn out tomorrow and next day!
Dewey