6/16/15 was down -$0.31 and the model projects that the CME Lean Hog Index component on the 6-16-15 kill will drop between -0.20 and -0.50. My friends, we have a down trend going on here. The Purchase Index has been down every day since 6/3/15. Looking at the firm kill rate and the lack of strength in the cut outs, there is a good chance that the down trend will last a bit longer.

Traders seem to think so, too, because they have bid the NNNs down to a discount of 3.39 to the component.

Packers made only a fair purchase yesterday at 89.6% of the moving average daily purchases.

I sold an NNN futures this morning on the strong opening. Didn't like the was the down move stalled so grabbed a few tics and headed to the bank.

Will buy the Q/V spread if it dips to 9.475.

Best wishes,

dhm