6/19/15 was down -$0.65 and the model projects that the CME Lean Hog Index component on the 6/19/15 kill will drop between -0.35 and -0.65. The down trend is continuing for both the Purchase Index and the CME Index. Looking at the high kill rate and the low price of the cutouts, there is a good chance that there is more downside to come for the Index. The NNNs settled at a discount to the component by 3.92. This says that traders thing packers are going to be hacking away at their bids in a significant way over the next few weeks as we move toward the NNNs expiring.

It seems to me that is quite a wide "Gap" with Independence day coming up but a lot of pork is being produced and packers do have to sell it.

If the NNNs pop a little, I'm going to sell.

Best wishes,

dhm