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. 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.
