October lean hog futures hold an unusually wide discount to the cash index, but that didn’t stop a heavy wave of selling on Tuesday that produced what looks like a seasonal top. While the cash index, which is down 65 cents today (as of Aug. 15) has weakened four of the past five days, October hogs finished Tuesday at nearly a $24.50 discount. Traders clearly fear the cash market is going to face heavy pressure over the next two months.
Hog Traders Take Bearish Stance
October lean hog futures hold an unusually wide discount to the cash index, but that didn’t stop a heavy wave of selling on Tuesday that produced what looks like a seasonal top.
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(Commodity Update)