Cash was up $1.75 to $2.00 yesterday and look for another round of cash strength again today. The pork carcass jumped by $3.50 with all pork cuts trading higher. The market is feeling the new demand and suddenly 2.5 million pigs per week is not enough pork. The dramatic move upward in futures is in sharp contrast to the depressed market from last fall through February. Extreme losses were incurred by hog producers. This makes me wonder if well see a friendly/bullish hog & pig report next week. This would really throw fuel on the fire. Sources indicate that ASF continues to spread in China and its also spreading rapidly in Vietnam. The CME, in their wisdom, is raising margins on hog futures. This only puts more pressure on the short hedger to blow out of positions. Our trading strategy is two-fold. First, start slowly taking profits on long call positions and second producers need to start laying into puts for summer production. Look for significant upside follow through today. The action in the April contract including the bull spreads signals this rally is for real.

Good morning DH, I have orders in on M,N,&Q to sell today if they get up to yesterday's high and I also intend to start a position in V & Z on the long side. V @ 80.25 & Z @ 74.75 if they back off some more.

Dewey