8/3/15 was UP +$0.80 AND the model projects that the CME Lean Hog Index component on the 8/3/15 kill will jump between 0.25 and 0.55. YES!! We seem to have an upward trend underway on both the Purchase Index and the CME Lean Hog Index. I will be watching each bit of new data to see how strong the up-trend is and when it will end.

I do believe it will end when retailers have filled their cases for the Labor Day holiday. Retailers seem to have a little appetite for pork yesterday and bid the cut outs up a little.

But will it end before the QQQs die a natural death on 8-14-15?

Packers made a solid purchase with their higher bids yesterday at 107.1% of the moving average daily purchases.

Carcass weights are dribbling a little lower as they generally do this time of the year. I'm sure hot weather is a factor and maybe producers are getting current in their shipments while packers are bidding up a little. Packers are continuing to finish their hogs about 3.0# heavier than non-packers and the percentage of packer hogs is holding firm in the 33.7% area.

I believe I will probe the short side of this market if the QQQs jump a little higher.

Best wishes,

dhm