7/6/15 soared by +1.16 and the model projects that the component on the 7/6/15 kill will be up between +0.25 and +0.55. Packers were able to make a fairly good purchase with these higher bids - 102.4% of the moving average daily purchases. This strength in the Purchase Index seems to confirm that the down trend has now been broken. With the NNNs trading at a premium of 2.61 over the component, there may not be much potential for the NNNs since there are only seven more trading days until we go to cash settlement.

The data continues to suggest that producers may have been liquidating market hogs during JUne and now we are seeing fewer hogs than anticipated coming to market. Dunno what's going on but hogs don't seem to be coming to market like the H&P report suggested.

Based on the data, I decided to take a flying leap at the moon and bought two NNNs this morning.

Best wishes,

dhm