Hog prices are soaring as the effects of African Swine Fever ((ASF)) are finally starting to hit home in pork-loving China. We wrote about ASF in a September blog post and recommended a six-month option play to try to take advantage of higher prices caused by a supply shortage directly related to the disease. The market ignored the potentially devastating effects of the disease and went nowhere for months. But, as the chart below illustrates, things have changed:
Data Source: Reuters
Three weeks ago April hog futures were trading at 53 cents per pound -