Not sure what to make of the cash hog market for today. Is it really possible for cash to trend upward when were in the process of killing over 2.6 million pigs this week? Cash was called lower yesterday and came in higher. The cutout was up .93 at $77.52. Futures rallied and the power was led by the front month Dec hogs. Volume was moderate at 49,700 with open interest edging higher by 440. The strength in the bull spreads is telling me that cash will not crater. Comments from Smithfield CEO recently indicated how poor business is for the largest pork producer in the country. Most hog futures are on their contract highs. It sounds like a lobby effort to end the trade war. Business does not appear to be poor right now in the pork. As Dec futures probe resistance toward 6000, weve been actively buying puts for our hedgers.

Still holding all my longs, haven't gotten high enough to sell and haven't dropped enough to buy more!
Dewey