In the face of carnage in all markets, cash hog prices are called steady. The hog carcass last week gained $2.74. This morning futures are showing a limit down open due to the massively negative performance of the outside markets. IMO futures may open limit down but I expect them to trade off limit. Consider what the U.S. dollar is doing….sharply lower. All pork customer currencies are moving higher with the exception of the Mexican Peso. So in summary cheap U.S. pork is even less expensive for all to import except Mexico. In addition, expensive EU pork is now more expensive for all. The data is not due out until later today but I’m expecting January pork exports to be huge, perhaps up as much as 30% compared to last year. Look for a sharply lower open with buyers in hogs bubbling to the surface.
After reading Dennis comments I decided to buy 5 more June hogs at L/D on the open, if I would have had a fifth of courage I probably would have taken a gulp!! This has already been quite a day and it's not even 10:00 o'clock!!
This is a day fortune's will be made and lost!