7/2/15 was UP +0.28 to 77.24. That was a bit stronger than the model projected but still quite close. The NNNs are now trading premium to the component by 1.60. If the down trend for the index has in fact ended, then we may see most of the "Gap" close with the Index showing some strength.

The six-day moving average carcass weight this morning was up to 211.45# this morning. That is -2.52 yr/yr but +7.06# over 2013. Producers are continuing to market quite a bit more poundage per sow with these heavy carcass weights. Packers must be comfortable with these heavy weights because they are marketing their hogs a couple of pounds heavier than the non-packers. I remember when packers would dock you for over-weight hogs and 220# was the top live-weight they wanted now carcasses are nearly that heavy.

My how times do change!

Ka! Ching!! Ka! Ching!! The Q/V spreads are still working. I don't have many left so I am going to hunker down and hold for somewhat higher prices now. This morning I scalped a couple of NNNs one from the long side and one from the short side. Am now long from 78.875 but it may not last long.

Best wishes,

dhm