Supply Outlook Boosts Hog Futures

There is a current outlook from hog traders that the domestic supply may be “shrinking” in the not-so-distant future.  Hog futures rallied for the first time since least week on this view.

A certain type of hog disease/virus that has already spread to eleven states reportedly has the potential to slow animal weight gain, and even shrink hog litters.  Wholesale pork prices rose one-half of one-percent on this news yesterday, spiking to their highest price since last summer.
           
A growing number of cases in the U.S. of Porcine Epidemic Diarrhea Virus in young pigs, which is currently untreatable, has traders worried about a tight supply situation,” said Barb Levy, chief director for Futures & Options Xecution’s futures division in Chicago, regarding the current hog futures situation.

Hog futures are in the midst of an aggressive uptrend – in my view, by the angle of the climbing hog prices.  This is a “buy the dips” type market in which we are long as of today.

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