Where's The Top In Lean Hogs?

Lean Hogs have been showing a lot of strength this week, after a sharp sell-off only a week earlier.

On Thursday we saw a 78% weekly increase in pork exports according to the USDA. Seemingly a sign of increased demand.

October futures are trading at a 'steep-ish' discount to cash, which is always somewhat of a concern when holding a short (bear spread) position.

Last Friday we saw yet another net increase in long positions held by managed money. The CFTC data has been showing net longs at an extreme level for the past few weeks and we are still seeing buying coming into the market.

It should be interesting to see what happens with Friday's report as there was significant weakness in prices last week.

For now I'm happy to continue holding my bear spread.