7/27/16 WAS DOWN -$0.60 and the model projects that the component on the kill for 7/27/16 will drop between -0.50 and -0.80.

Cutouts crashed yesterday with bellies dropping an unbelievable 17.40 and that comes on top of a drop of 8.73 the previous day. Maybe if pork gets cheap enough the Chinese will come to the rescue.

It is beginning to look like the last H&P report carried with it some errors in the numbers in the various weight categories but the total number of market hogs may have been correct. If that is the case, the hogs that did not keep their appointment with the packing plants in June may now be coming in tardy. When we get fresh corn and cool weather, hogs may really begin to move to market.

I don't think we are headed for a 1998 type blood-shed but we may be headed for the liquidation phase of the hog cycle. Packers knew what they were doing when they got more current in their shipments during May and June.

Best wishes,

dhm