6/17/16 was up +0.23 to 83.03. This cuts the NNNs premium to the component to 2.57 with 18 days to expiry. That was not up quite as much as the model projected.

The six-day moving average carcass weight dipped to 211.53#. That is =1.05# year over year. Packer hogs are a little heavier at 211.86# that is down from the high of 217.08# they hit on 4/15/16. It now appears that packers were holding back their hogs for this higher price level when hogs are in short supply. Packers really ran their hogs to market on Friday and Saturday. Paacker hogs made up 35.88% of the kill. It is not usually nearly that high.

Index hogs were lighter at 209.99#.

Index hogs may be in mildly short supply. It is possible this could cause packers to bid higher for index hogs as they jockey to see who kills the index hogs.

I'm plenty happy to see the N/Q spread showing a little strength today.

Best wishes,

dhm