for another $10 drop? I had no other choice but to talk to my producers about one of the very strong addictions between the Oct and April contracts. The April contract as front month has an addiction to mimicing what the Oct contract traded for price range when Oct was front month. The fundamentals are worse than they were back in Sept and Oct managed an $8.32 rally and quickly reversed into a $11.25 WashOut to new lows. The hog market also has another Addiction for March WashOuts of $10+ WashOuts only a few are mild $5 flushes. Several of my good hedgers where chomping at the bit to start another round of hedges since they have been very productive.

They didn't want to wait for my target area but I told them to take a deep breath and be patient for the $8.32 rally to happen or even a $9 rally to test the 3rd bounce line resistance @ 89.80-90.00, they didn't want anything to do with giving it that much room to rally. We argued for a week over sell orders @ 89.10 to 89.60 area. I told them 89.10 was too obvious and their orders needed to be closer to the $8.32 mimic @ 89.60. We finally came to agreement for orders @ 89.40 and 89.55. It's too late to change their minds now but they could lose their courage. They do have damage control @ 91.55 and acting like "kids in a candy store" in anticipation of the March WashOut waiting to happen. Will it be a mid March Flush or end of March or will we be wrong and only get a mild $5 backfill. The fundamentals are showing some improvent but the hog numbers are still higher than last year.