Good evening DH, Today was definitely not a good day for me!! I did buy more Dec & Feb today and will buy more tomorrow if they are weak, HOWEVER I am about to reach my limit! This may be one of those time that the one's controlling the market want to scare all the longs out and if everyone will get short - then we will have some L/U days! That sounds like a conspiracy and it could be. I know this market is always tough but right now it is in the EXTREME! I will post a little of what I just received from Dennis -

What to Expect?
Obviously there’s no turn in the market yet. Now prices have pulled back all the way to the highs established last November. I’m assuming we’ll see another decline in open interest in the morning. Traders are giving up on the story of ASF and its bullish impact on prices. Solid export evidence as outlined in the previous two weekly export reports can’t stem the tide of selling.

We are slowly crawling back into bullish positons. Mostly through call spreads. Buying calls outright is still an expensive proposition. I’ll not lose sight of the fact that the Chinese hog herd has been decimated. Vietnam has major problems as well. One day, perhaps soon, the market will bottom.

The Chinese government is providing financing and incentives for hog breeders to re-populate. However, the problem of new populations having another outbreak will keep repopulation from occurring quickly. Most experts believe it will take at least five years for China to get ASF under control. Most in the trade believe accelerated shipments of U.S. pork to China will begin sometime after the middle of July.

Dewey