Hog futures were lower last week across the board, held under pressure by dwarfing supply numbers.Hogs are now the whipping post at the CME
The Swine Times
Buy Feb- Sell April. Feb-April spreads have pulled back below 7.00. We think this is a great spot to jump in and own the front of the curve.
Supply numbers should be tightening soon and the US-China signing taking place in two weeks. There is value at the front of the curve
The pig crop and cold storage reports released after the close on Monday will set a bearish tone into the holiday trade.
We think the breeding herd will be seen as massive on Monday. We want to buy near term with demand in mind and sell deferred supply
Hog futures will get a boost to open the week with the phase 1 complete. Summer hogs should begin to trend.
US-China rhetoric turned bullish this morning as President Trump tweets a deal is “close”
China looks to lower tariffs on imports as the critical date approaches. A 2.8 million head slaughter this week will likely limit upside
G-J struggles again above 6 cents. Lets take profit and buy a break
We expect the Dec contract to continue to chop this week. We will be looking for evidence of topping slaughter numbers to jump long Feb.