All last week I was hounded by strong Hallucinations. I haven't had any hog market Hallucinations since early April, probably due to being too busy. When it broke 80.00 we threw some orders out @ 82.00. With Fridays drop I figured the high was in and drop our orders down to 80.90 and expected them to get hit on Monday. So much for expectations. My Hallucinations are screaming $10 drop minimum and a retest of the early July low is a good possibility due to the seasonals. The China story just keeps the bulls interested and excited about buying the dips. We could have several $10 up & down sideways runs for Oct hogs by the time it expires.

We all have to have a reason to believe and the China story is a pretty good reason but it will also keep over production EXPANDING to create a 98 type Bloodbath for the next 9 year cycle low. China has the most to gain because they will buy the market before they announce that they want to buy pork, then they will short the market just before they cancel their orders. Chinese Musical Chairs has been playing the grain markets for decades, now they know it works in the hog market whether they need pork or not.