Cash will be called lower simply because it can. Packer margins are very close to breakeven. At some point, likely soon, butcher numbers will drop off, cutout should grab hold and cash will begin climbing higher. Futures appear to be anticipating such a development with the higher performance since the release of the hog & pig report. Yesterdays impressive rally occurred on volume of 69,800 with open interest increasing by nearly 3,500 cars. Open interest was down in the July and Aug but reaching higher in all other contracts. Consider that the good news from the hog & pig report should continue to bring buyers into the deferred contracts. Trump indicated that hes happy with the job Mexico is doing in handling the flow of migrants. For now he stated that tariffs against Mexico are off the table. I suspect lows are in place but I also need to see a solid close above 8600 in Aug hogs for confirmation. Sources indicate that losses continue to mount in Asia due to ASF.

Sure glad to see Itz posting as I didn't know if we would hear from him again!! Long term I am still very bullish hogs but still very nervous short term. We usually have a sell off after the 4th of July if my memory serves me correct.

Dewey