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Northwest Iowa | I really hate trading hogs. I was forced to watch very closely as I was risk manager for livestock with the company I was with. Ash Wednesday tomorrow-Lent starts. Seasonally that is a lower time for hogs. Sometimes it is just flat with a soft setback. Many years ago live hogs were a 30,000 # contract. There is some trivia for today! It was also a stronger seasonal spring break as more of the old traditional spring and fall farrowers were still in play. I am usually not to keen on selling June hogs as they tend to be very strong into mid-May. You are trading them so that is fine. We used to watch the Thursday before Palm Sunday for a possible low. That is when the retailers are starting to get stuff lined up for after Easter featuring. The 3.5 year cycle low was due and set around Thanksgiving 2015 which is also a very strong seasonal expectation. What about selling calls against the April futures? Just looking over the cash numbers, I'd guess that there is still some red ink flowing for hog finishers. | |
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Hog traders/producers
