Good morning to all, I don't have any idea what hogs will do today but I will share some thoughts from my broker that I just received
Cash is called fully steady moving into next week. The cutout is showing signs of stabilizing on either side of $90.00. Early today my sources report that hams are looking higher, again. Bellies are expected to be quoted firm to higher as well. Loins, butts and ribs, however, are expected to remain soft to lower as these primal cuts retreat from recent highs.
Futures opened lower and remain lower but most contracts are chewing their way toward unchanged. We remain long term bullish based upon the outlook for lower production for the rest of this year and declining production for next year as a massive sow liquidation in underway. What president Trump says today in the press conference regarding China will be awfully important for the pork market. It’s vital that we continue to ship pork to China. Reports continue to confirm that ASF continues to spread in China. I believe China will need large amounts of pork for several years. But will the U.S. be one of the countries shipping to China?