6/29/16 was down -$0.47 and the model projects that the component on the 6/29/16 kill will drop between -0.05 and -0.35. With their lower bids, packers came up with a few more hogs than they have been getting: 96.2% of the moving average daily purchases.

It appears that producers were a bit more will to sell.

Cutouts got punished a good bit yesterday dropping 2.17. It has been a while since we have seen a one-day drop like that. Perhaps this means that retailers have their cases full for the Independence Day holiday. How much follow through to that weaker demand perhaps depends on how much pork China is willing to buy.

Just sold a pair of the V/Z calendar spreads. It seems a little high to me when it moves up toward the eight-buck level.

Best wishes,

dhm