6/22/16 was up +$0.49 and the model projects that the component on yesterday's kill will continue on its upward journey this time gaining something like +0.35 to +0.65. With their higher bids, packers were only able to get 93.7% of the moving average daily purchases lined up. This is the second day that the in a row that purchases have been weak.

Cut outs are holding firm. There may be a little holiday demand hanging around. With carcass weights falling, it doesn't look like we will have a glut of hogs that are going to be coming to market.

The weakness of the NNNs this morning has cut the "Gap" to about a buck and a quarter. If the component comes in as projected it will drop below a buck. The uptrend in the Purchase Index and the CME Index has me thinking that traders have trashed the NNNs too badly and there may be a point or so of recovery by the time we get to cash settlement so I am riding a long NNN future.

Best wishes,

dhm