The CME component on the 6/23/14 kill was - - -

up 1.40 to 122.38. The strength in the NNNs has kept the premium firm at 7.65.

On average over the past 10-years, the CME Index dropped 3.03 from this date until the expiration of the NNNs. The most it gained during this 10-year period was in 2008 when it gained a paltry 0.39. But this is not an average year. The decline in beef supplies and piglets losses due to the PED virus has created a period of uncertainty the likes of which I cannot remember seeing.

With the HEN4 futures at 130.75, they have eclipsed the 3/18/14 high of 127.95. It is going to take continued strong demand and a weak kill rate to support the NNNs at this level.

I do not want to go into the weekend long the NNNs. But for now I am riding a long NNN.

Best wishes,