Some strength in the hog market

There was real strength all day Wednesday in the lean hog markets.

Futures have been trading at a steep discount to cash and it's interesting to contemplate if that discount is warranted.

Cash was trading at 102.23 to the October futures at 88.275. October is also the most active contract so there is quite possibly some rollover going on.

This hasn't helped either of our spreads as we (like many traders) await the typical weakness in hogs this time of year.

For now our live cattle/lean hog spread is only just holding above our stop at 40 even. There's some chance of an exit in the coming days.