DH, I just received the following -
For some unexplainable reason there’s a short term glut of hogs allowing packers to drop cash bids. Cash is called flat to lower for today as they insist on paying lower money for hogs for next week. The weekly kill is projected to be a monster and average hog weights are nearly 7 pounds higher than last year. June futures are reflecting this negative sentiment.

Hams are quoted fully steady despite the surge in production that’s occurring. Bellies are unsettled. Stories are circulating describing how strong bacon demand is but it’s not being reflected in fresh belly prices. Most retail pork items appear to be in good shape.

In addition to the Chinese shutting down pork imports from Canada, there’s another major story out as reported by Reuters. The Chinese government is issuing tariff waivers on certain U.S. products which includes beef, pork, soybeans, coal and some products made from copper. This, in effect, removes the 50% tariff on U.S. pork. So we knew this tariff would go away somehow and now we know how, through a waiver of the tariff. I consider this very bullish news but of course the futures market is not responding at least in violent fashion.