Good morning. Lean hog futures opened higher this morning off a steady to mixed cash tone (not outright lower) and a slightly firm tone in the product. Today, by the way, marks the third day up in the Dec hog against the downtrend. The recent low in this contract was 8615 and I'm guessing that more than a 350-400 bounce off the low will be difficult for this market to sustain. We're moving into new short positions on today's early higher trade in the Dec hogs. My sources continue to indicate plentiful hog supplies for November and product that remains mostly offered especially in bellies, loins and butts. Hams appear to be in better shape. The latest CME lean hog index stands at 9006, so the Dec contract is nearly par with the index, currently trading at 8980. We're risking approximately 100 points from the point of entry.

Good morning DH, I have sold Dec & april this morning to add to my short position. We know for every short position there is a long position! I also know I am not always right! I guess you can read between the lines and tell I am very nervous!
Dewey