The good news is that numbers of marketable hogs seems to be manageable and is not weighing heavy on the market. The Cold Storage Report also indicated an overall drop in total pork supplies held in freezers. This indicates still good demand for product and bodes well for price outlook since the slaughter rate continues to lag well behind last year's level. Seasonally, we may be heading into a top in the market and hedgers should take advantage of the seasonally large premiums offered by the futures market in the summer contracts. With the large discounts in the fall and winter contracts, only option strategies are recommended at this time.
Information is in no way guaranteed.
Futures trading always involves a certain degree of risk.