Cash hog prices were lower yesterday and look for the cash to remain sloppy to lower for the rest of this week and perhaps most of next week. The weather pattern looks to be above normal temps through most of
December. Good weather for raising and shipping hogs. The animals are feeding on the new crop corn with consumption good and weight gains solid. Average live hogs weights took a jump last week which was a bit of a surprise. The pork cutout was down .20 yesterday but I'm expecting additional weakness in the pork carcass this week. Lean hog futures are lower to sharply lower approaching the pit opening bell today. We're short the Feb but we're going to take profits on part of our short on a trade below 8600 in the Feb hogs. The current low is
8590 and we're not out as of this writing. Lastly, reports have surfaced that PED has hit the Ukraine and that death losses could be substantial. This story needs to be monitored. Generally, I'd want to be bear spread if the PED is going to be a problem in Europe.
I am buying Feb, maybe good, maybe not so good!