I got out of all my Long Dec hogs and am flat the market! I am about to decide to quit the hog market and focus on cattle & grains. I said sometime back that the cme ruined the pork belly market and I believe the packers are going to ruin the hog futures market, Smithfield seems to be the leader I believe!

Following are some comments I received from my broker

What to Expect?
Dec settled 40 higher at 6550. The CME lean hog index was last quoted at 6973. The two are converging mostly by the index dropping. For reference, the Dec carcass contract settled at 8060 compared to last night’s hog carcass of $81.15. I’m pretty much out of gas when it comes to trading hogs. Just don’t see any opportunities. Certainly, don’t understand the fundamental situation going on with packer owned hogs. I do know that no one but the packer will come out on top in the face of utter confusion. Like I said, trade cattle and corn instead. No recommendations