6/20/17 was up 1.34 to 88.68. The NNNs are not letting any grass grow under their feet and they have responded with a gain of 1.15. That keeps them discount to the component by -2.60. I suppose this means that traders are expecting packers to trim their bids by a few points once we get through the holiday rush. The surge in the cutouts seems to say there is a strong demand for the holiday. Maybe it is partially not as many hogs as the last H&P report suggested.

The 6-day moving average carcass weight dipped to 207.79#. That's -2.21# yr/yr. The data continues to point to hogs having been pulled forward. If that is correct, packers will continue to jockey to see who kills the hogs. Packers killed a lot of their own hogs again yesterday. Packer hogs are now -2.11# under non-packer hogs. Both packer and non-packer hogs were lighter today. Not surprising with hot weather now here.

Ka!! Ching!! Just covered a N/Q spread I had sold earlier this morning. I love it when I can put a spread on and off on the same day. The often clutter up my boat for months and months.

Have been able to scalp in and out of the NNNs several times today.

Best wishes,

dhm