Lean Hog Futures---Hog futures in the February contract is currently trading higher by 100 points at 68.72 or 1.55% as optimism about a possible trade agreement with China is bullish for prices in the long-term.

I am keeping a close eye on this market as I do think prices have bottomed out as I will be looking at a bullish position if prices break the 70.05 while then placing the stop loss under the August 5th contract low as the risk would be around $2,000 per contract plus slippage & commission as I do think a bottoming out process is at hand.

If you take a look at the China situation they have lost over 250 million hogs due to the swine flu and that is going to be an extremely bullish fundamental factor towards prices in 2020 as I think the downside is extremely limited so look to play this to the upside as I think there could be significant room to run.

TREND: MIXED

CHART STRUCTURE: EXCELLENT

VOLATILITY: HIGH