Lean hog futures defied high cash hog bids and are trading slightly lower in midsession trade. Nationally, cash hog bids are 73 cents per cwt higher after evidence yesterday that recent declines in cash bids may have bottomed out. Hogs are looking stronger on the charts, with a clear pattern of higher highs and higher lows after breaking the downtrend from mid-October highs last Thursday. Exports are firm and there’s talk China may need to keep importing aggressively to control inflation in pork prices in that country that are causing social unrest with pork the staple meat for Chinese. At midsession December hogs are down 37 at $87.45 and February hogs are down 15 at $90.95.
Cotton futures are sharply mixed in midsession trade. Futures have dropped so sharply so far this week that the nearby December contract is up a bit on pre-holiday profit-taking by short traders. But deferred cotton futures vary from sharply lower to sharply higher in thin trade. The bearish news overnight about the Chinese economy slowing is feeding pessimism about demand into 2012. The chart damage is severe and the trend clearly lower. At midsession, December futures are up 5 cents per cwt. at $90, while March is down 64 cents to $90.48 and the October contract up $1.05 at $93.13.