6/21/16 was up +$0.33 and the model projects that the CME component will be up between +0.25 and +0.55. With their higher bids, packers were only able to purchase 86.3% of the moving average daily purchases. Carcass weights are falling and producers were dragging their feet a little yesterday in selling hogs.

Friday the USDA will tell us what they think about the inventory of hogs.

The NNNs settled premium to the component by 2.96. A couple of strong bid-days by packers and there will not be much premium left. Sometimes packers don't bid higher following the pre-Independence Day surge in demand. Packers margins are in fairly good shape so they are able to keep their bids firm.

Pre-opening is suggesting the NNNs will be higher on the opening. It may be an interesting day.

Best wishes,

dhm