broker and thought you might like it -

Packers are trying to restore and improve lost margin through a soft/lower cash hog market in the face of firm to higher carcass prices. Hedge selling appeared on the opening bell which is the norm this year. Hedgers always seem to be active early in the trade week. Certainly, prices are high enough to entice selling or the locking in of profitable prices. However, this does not mean that prices are headed lower. My liquidation target is 11500 in the June hogs. I want to revise my statement regarding liquidation. Make sure you’ve liquidated some positions up here but it’s not a bad idea to keep some positions on the book all the way to expiration. If the market pulls back for two or three sessions, we may step into some July calls. I continue to hear talk of a hole, a very large hole in butcher hog numbers this summer.