Lean hog futures are trading higher at midsession. The cash market is lending support to futures. Cash hog prices were up by more than $1 per cwt in the Western Corn Belt and the cutout was 44 cents higher on Tuesday to $86.29. Hog prices usually improve from their December lows all the way into spring. Plants will be closed Monday reducing the number of hogs needed for next week, but a large slaughter is expected for Saturday, Prices dropped on Dec. 8 leaving a gap of about 50 cents from $97.50 to $98 for the June contract. There is a good chance prices will move up to fill that gap over the next few sessions. February is 60 cents higher at $86.35 and April is 45 cents higher at $89.20.
Cotton futures are trading strongly higher at midday. Futures are rallying on reports of a meeting being held today by the Trading Corporation of Pakistan to fix a market support price for those who purchase lint from the ginners. Buyers are scurrying to secure cotton needs now in fear that the price will be set higher than current levels. The market has hit limit-up gains several times this morning, and is hovering not far below that level. China has recently stepped up imports to rebuild reserves. March is 365 points higher at 91.56 cents and May is 36 points higher at 91.45 cents.