Hogs: Very Firm, some months showing limit up
We got through what has been the hardest day of each week for the past several weeks, Monday. We got a string of bad news over the weekend with regards to reduced capacity at a handful of packing plants through the Country.
We have been talking about this possibility for the last month + and believe the futures market has been trying to price it in, after all, it is a futures market. Now that we have some of the bad news right in front of us, the market may be looking into the future to see what that is next, and perhaps that could be some light at the end of the tunnel. Just as the market was pricing in bad news over the last month +, it is possible for the market to price in future good news, before we have all the bad news in front of us. April futures are officially in delivery and perhaps now we can see that converge with cash, which we expect to be softer this week.
Right now, especially in the first hour of trade, it is all HFT Algos which doesn’t do anyone any good. We are hopeful that we can get these markets back to some sort of normalcy so we can start focusing on true fundamentals and technicals.
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