A phase one deal effectively takes away the Chinese 60% tariff on U.S. pork. It levels the playing field. The new, level playing field is listed below. What do you think the Chinese will do? The funds are being aggressive and believe they’re in control. In fact, it’s the packer that’s’ in control. The keg is loaded with powder and the fuse is lit. Funds believe they know just when the keg will blow…when the 40-day moving averages are penetrated. It likely won’t be that easy. When the packers turn buyers we’ll likely gap through the moving averages and the funds will be buying in their shorts 700 to 800 points higher than expected.

WORLD PIG PRICES AS OF 12/12/19

U.S. $47.72
Canada 61.84
Russia 62.07
Brazil 62.43
Mexico 66.67
Central Am 73.90
Spain 76.22
Argentina 82.47
Denmark 89.94
Germany 102.12
Vietnam 144.54
China 212.95

The above is part of what I received from Dennis in his comments. I don't know what Monday will bring but I know a week from Monday will bring the pig report! I was disappointed with yesterday's performance of the Feb contract, in fact I am disappointed with hogs in general!!

Dewey