The following was sent to me by my broker just now, some might be interested -

LEAN HOGS:
Cash, after trading slightly lower yesterday is called steady for today. That’s likely not going to work IMO as the surging cutout is driving the hog index ever higher. We now have the index surging above 7600 with it likely approaching 7700 by tomorrow. Oct futures are hanging out today below 7300, providing real opportunity to get on board. We’ve been actively buying futures and buying puts today. Dec and Feb hogs have been pounded since the hog & pig and may have just found a bottom.

Product is solid with hams and bellies firm to higher. Trimmings are mixed but retail cuts are all in solid shape according to my meat sources. Packers are well sold ahead. The kill is not a burden as it really should be at this time of year. In fact, this week’s kill is already being revised downward from projections posted yesterday.

Finally, the CME is coming out with a new hog carcass (cutout) contract Nov 9th. This will help producers interested in hedging as most get paid on the behavior of the carcass rather than on the negotiated cash hog market. We are looking forward to utilizing this contract and options on this contract for our hedge clients and our spec traders