6/27/16 was up +$0.02 and the model projects that the CME component on Friday's kill will be up between +0.10 and +0.40. Packers probably have some more expensive hogs waiting in line to be run through their plants.

Packers made only a fair purchase at 92.7% of the moving average daily purchases. This is the fourth day in a row t hat the purchase have been below 100% of the moving average daily purchases. As I look at the kill rate since 6/1/16, it just might be that the USDA over-stated the number of hogs over 180#. If not, there are going to be larger kills starting to show up shortly.

The declining 6-day moving average carcass weights suggest producers are actuallly quite current in their shipments.

It just might be that the number of market ready and near-market ready hogs is not as great as the USDA reported.

I was able to kick a couple of long N/Q spreads off my boat and make a trip to the bank. I needed that.

Best wishes,

dhm