7/8/15 was UP +0.67 to 79.01. The NNNs are now trading premium to the component by +0.71. There has been quite a bit of closure of the "Gap" and all of it is coming from strength in the index. The model is projecting that the cash settlement index will be 80.05 with a range of 79.55 to 80.55. I still have a couple of long NNNs that I'm planning on taking to cash settlement. If we get much of a dip, I will be an active buyer of the NNNs. There was a fairly nice dip earlier today but it came before the 201 report and I didn't have the benefit of seeing how strong the component was on yesterday's kill. Besides that, the USDA still has not posted the morning report so I could calculate the final Purchase Index for yesterday.

To a certain degree, I'm like the FOMC; I'm data dependent!

There seems to be a shortage of hogs in the "Negotiated" category. Prices are surging and carcass weights are falling. The "Negotiated" hogs don't make up a very large percentage of the Index but they ARE a part of the calculation and strength there does make a little difference.

Best wishes,

dhm