6/24/15 was down -$0.67 and the model projects that the CME Lean Hog Index component on the 6-24-15 kill will drop between -0.35 and -0.65. The down trend appears to still be intact. Packers did not get a very strong purchase yesterday with their lower bids - 87.1% of the moving average daily purchases. That is a bit lower than we usually see.

Packers are having a challenge selling all the product that is being produced. Yesterday cutouts were down $47.98/cwt from this date last year. That's a 36.5% drop.

The kill this week is only up 7.25% from the same week last year. Demand is a little weak and it appears that it is the export demand that is the problem.

Yesterday I sold a pair of NNNs near the open. By the time the day ended I was able to cover them and put a little pocket change in the bank. The 3.83 discount the NNNs are trading to the index component bothers me a little when thinking of being short the NNNs with only 14 more trading days until we go to cash settlement. But I threw caution to the wind and sold an NNN pig at 75.175 this morning. I was not brave enough to sell two!

Yesterday I was able to buy two K/M spreads at -3.60. I think Farmer Ed would approve of that deal. I might have setting on the fantail of my boat for a good, long time. If it goes on down to -4.05 I will pile-on another pair.

Best wishes,

dhm