Hogs by Dennis Smith

Cash is called fully steady to perhaps higher for today. Yesterdays kill came in a bit larger than expected. Another storm system will track across the S. Midwest later this week with temperatures dropping severely this weekend. Tough weather for livestock, tough weather to move livestock. The Goldman Roll and index fund rebalance is now complete. Pork remains stable. We continue to miss export data. President Trump made the statement to the American Farm Bureau that China will open its market up to U.S. pork. When? We need to see the 50% tariff dropped before hogs will likely bottom and show the ability to sustain a rally. I expected this to happen already which is one area in which Ive misfired. China has released their official estimate of over 900,000 pigs culled due to AFS. This is up from the previous estimate of 600,000. Most believe the situation is far worse than what is being reported. Its been reported in 24 out of 34 provinces. Ill provide more information on this subject in tonights wire. This weeks kill is projected to come in at 2.519 million which is lower than last weeks 2.556 harvest yet still up 3% from the year ago kill. Were not sure that Trumps comment will give the market traction. His comments severely lack detail.

I have bought all the hogs I intend to buy until I get rid of several. Several have been stopped out of the hogs yesterday and Friday, maybe now they will go up DH!