I just received this from my broker and thought someone might be interested,
The short covering is not complete. It would appear the Oct is just too discount given the timeframe. Nothing has changed with one exception. The hog & pig is on the horizon. Concern about downward revisions seems to be ushering in the short covering. Long term, problems still exist. Slower chain speed, acute labor issues, prop 12, slowing exports and rising hog weights are all bearish. Historically speaking, hogs remain at high prices. My sell zone to add in the Dec is 7650-7700. We should see this opportunity prior to the hog & pig one week from today. Oct appears under-valued in terms of the index (9426) and the timespan for convergence by the middle of Oct. Next week look for Oct to gain on the Dec. Focus on selling the Dec, not the Oct.