up $1.28 and the model projects that the CME Component on the 6/23/14 kill will be up in the range of +1.05 to +1.35. The strength in the HEN4 over-night has opened the premium of it to the index to 8.07. That is a bit higher than we usual see but we have a more than usual amount of uncertainty relative to the inventory of market ready hogs in producers' barns.

Demand for pork seems to be firm with cutouts jumping 2.28 yesterday. That is a gain of 6.42 over last Monday. I am of the opinion that retailers are filling their cases for the Independence Day cook-out trade and the high price of beef is probably sending a fair number of consumers to the pork.

This Friday we get the quarterly H&P report. I'm going to be mighty interested in what it tells us about the PED virus losses.

Best wishes,

Doc