No one has posted anything this week so I will give you what I just received from my broker. I do have a long position on and not doing very well!! Dewey

LEAN HOGS
The noon cash did not come out until very late. After the close I noticed it was quoted down $2.00. Packers are breaking the negotiated cash while the formula edges higher as does the carcass. Futures stabilized after the limit down move Thursday. Dec was up 80 with the rest of the board near unchanged. Friday’s kill was pegged at 486K and 244K on Saturday. The weekly harvest was 2.679, down 9K from last week and unchanged from last year. The late cash confirmed prices paid were down $2.00. The closing pork showed the cutout sharply lower which of course the packer knew was coming. The carcass was down $5.59 at $93.25. Substantial weakness in hams and bellies whereas the retail, what we thought was soft, was quoted steady. That’s ok. Once the product sets back a bit, buyers, large end user buyers will step right back in.

What to Expect?
The index is stable at 7854 on the last quote. Dec futures at 6700 look awfully cheap given there’s no surge in hog supplies evident. The kills continue to run even with to below last year. My data tells me in about two weeks the numbers should drop off, according to the hog & pig, to 3% below for the rest of the year. Obviously, at this moment, the board does not believe such. Packers are having a huge influence on the board. They also did this with the Oct contract, but eventually the fundamentals drove the Oct sharply higher. The same will likely occur in the Dec. We bought some Dec 78 calls at 50 today, adding to our risk-free positions.