Look for a 100 to 150 bounce to sell early this week in the lean hog market. It may not happen. Cash trade was higher on Friday out west with prices mostly down .50 in the east. The pork trade was under pressure and
quoted down .93 on Friday. For the week the cutout lost just .45, however. Economic news out of China was negative as it continues to confirm the slowdown in Asian economic activity. Lean hog futures are locked into a downtrend and expected to stay that way in the face of widespread expansion. Long liquidation was a feature of the trade on Friday with OI declining in the first six contracts. The commitment of trader data confirmed that funds are net long 63,000 cars with no real change as of Dec 2nd. These funds have likely starting dumping long positions last week. The next support would be a test of the Aug lows in the Feb hogs, or 8340.
Still looking for a rebound but it could be a fizzle! Still holding Feb & just bt some april