6/22/16 was up 0.56 to 84.31. With the Index continuing to climb and the NNNs taking a dip, the NNNs are now discounted to the component by -0.41. The six-day moving average carcass weight dipped to 210.43#. That is -1.71# yr/yr. The lighter weight hogs this year are detracting somewhat from the amount of pork being produced. Index hogs continue to be lighter at 209.33#.

With cutouts holding steady to firm, carcass weight declining and kill numbers running slightly below projections from the last H&P report, my bias is that traders have trashed the NNNs too badly relative to the fundamentals. So I bought another NNN future at 83.95. It really does not look like a very brainy strategy at this point in time. And it may turn out to be a burden if the demand crumbles following the Independence Day holiday surge.

Tomorrow we get the quarterly H&P report. I'm expecting it to be mostly a Ho! Hum! event.

Best wishes,

dhm