6/14/14 up $1.34 and the model projects that the component on yesterday's kill will soar by something like +0.75 to +1.05. It doesn't look like you will be punished is you went into cash settlement with long MMMs. It has been a long time since the PUrchase Index has posted a one-day gain that large! This seems to be validating the notion that hogs have been pulled forward and there are fewer of them than projected by the last H&P report.

With their sky-hi bids for Index hogs, packers were able to purchase % of the moving average daily purchases of Index hogs. On the other hand, they only purchased 74.7% of the moving average of TOTAL hogs. That is the smallest percentage of total hog purchases that I have seen for quite sometime. The low purchases numbers are beginning to show up as low-kill numbers. So far this week the kill is running below the same period last year by -0.23%. That is not much of a decline -

But -

From the last H&P report we should be seeing a plus number of some 5%.

Maybe the pulling forward of hogs that I have been talking about is now showing up at the packing plants. With demand holding up well, packers will be wanting to keep the chains running. Doesn't look like a bear to me.

Best wishes,

dhdm