6/27/16 was UP +0.30 to 85.02. The mild weakness in the NNNs has put the NNNs at a discount of -2.09 to the component. Obviously "The Market" thinks packers are going to be dropping their bid prices but the trend for both the Purchase Index and the CME Index is still up and packers are getting only fair purchases with their higher and higher bids.

The 6-day moving average carcass weight continued its decline this morning dropping about a half pound to 209.45#. Index hogs were a bit lighter at 208.66#. Packer hogs continue to run +1.16# heavier than the non-packer hogs.

There are just not as many hogs keeping their appointments with the packing plants as suggested by the last H&P report. Surely hot weather is a factor but it was fairly warm last year at this time and producers shipped more hogs than they are shipping this year from a reportedly higher inventory of market hogs.

I don't know what is going on but the USDA may have some explaining to do in the next H&P report.

The calendar spreads are not moving much this morning so I bought another of the NNNs thinking they might bounce a little if packers keep bidding higher.

Best wishes,

dhm
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