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Hogs

Good morning, I did not tell the truth the other day! I said I would not buy any more hogs on this trade!! Wrong as I have bought several and have orders in to buy more Dec this morning at 61.75! This trade may put me on the Poor farm instead of the hog farm!! Dennis has gotten very negative on the hogs as of late - following is what I just received from him

Cash will be called steady to lower simply because that’s what the major packers want to do, they want to continue to throttle the cash lower. In their defense, the weekly kill will likely be a record today, surpassing the current record of 2.738 million set in December of last year. However, packers are making hay, processing record numbers at hugely profitable margins. Sorry, there is no justification for lower cash every day this week while producers are losing money and the hog/corn ratio stands at 9.0 compared to 13.95 this time last year. Cutout values have soared over the last four weeks with hams record high for this time of year. There’s so many things wrong with this picture I don’t know where to start, where to end. Weekly export sales were good at 19,900 MT with China the largest buyers followed closely by Japan. Shipments were outstanding at 34,300 MT with China taking the most pork last week at 10,900 MT. Mexico was second, taking 9,000 MT. China also purchased 9,900 MT for delivery next year. They already have 198,000 MT booked for next year compared to total commitments this year of 409,000. South Korea has 9,000 MT booked for next year and Australia has 7,100 MT on the books. My bullish bias tells me to expect a rally but I have no idea if a rally will develop today.

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Hogs
Good Moing, Dewey. The weakness in the - - -
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Yes, the weakness today may have been - - -