6-21-16 was up 0.51 to 83.75 and that, along with the drop in the NNNs, has cut the premium of the NNNs over the component to 1.25. So far demand seems to be holding up well but retailers most likely have stocked up for the holiday and then demand may soften.

However the 6-day moving average carcass weight dipped to 210.54#. That is down 1.59# yr/yr. Index hogs also dipped now being at 209.25#. Either hogs are not growing well or hog supplies are tightening or possibly a little of both. So far this week the kill is running ahead of projections from the last H&P report. It may just be the heat is playing havoc with hog-appetites.

Ka!! Ching!! Ka! Ching!! Just took profits of two long K/M spreads. This far in advance I often have to live with them for a while. These two did not linger around very long. Now I'm trying to get a couple back onto my boat.

Best wishes,

dhm