7/7/16 was down -0.53 to 82.33. That puts the component at a premium of 1.88 over the NNNs. Traders are expecting the Index to continue its decline for the next five days as we move to cash settlement of the NNNs.

The 6-day moving average carcass weights moved up to 209.47#. That is -1.90# yr/yr. Index hogs were lighter at 208.35# and packer hogs were 1.32# heavier than non-packer hogs. It appears to me that packers have been moving their hogs to market faster than the non-packers. I'm suspecting packers know it is in their best interest to get their hogs through the packing plants as quickly as possible since the price of pork may be on the usual "Fall" decline.

I'm short the NNNs because the Purchase Index and the CME Index seem to be headed headed down. At a drop of 0.50 a day, a lot of "Gap" can be closed.

Best wishes,

dhm