7/22/15 was UP +$0.01 and the model projects that the CME Lean Hog Index component on the 7/22/15 kill will change between +0.15 and -0.15. That is essentially unchanged. Packers made a fairly strong purchase yesterday at 111.6% of the moving average daily purchases. And they did this while keeping their bid prices essentially unchanged. I get the feeling that producers are motivated sellers suggesting that they have plenty of market ready hogs.

The QQQs settled last night discounted to the component by -0.45 so they are now in lock-step but they won't stay that way. Technical/emotional factors (and maybe even some fundamental news) will horse the QQQs up and down maybe even in a significant way.

It does not appear to me that the firm kill numbers, heavy carcass weights and stagnant cut outs will drive the Index much higher until packers are able to scrounge up more demand. Exports may be where they will have to find that demand.

My boat is riding high in the water with practically nothing on board and I have feelers out looking for something to take on board.

Best wishes,

dhm