6/21/16 was up $0.68 and the model projects that the component on yesterday;s kill will jump between +0.75 and +1.05. The early morning sell-off in the NNNs has opened the "Gap" to -3.30 with the NNNs being at a discount to the component. If we get the bump-up in the component that the model is projecting, the "Gap" will become even wider. Obviously trades are thinking that packers are going to be trimming back what the will pay for hogs. Cutouts really soared yesterday so demand is very strong at this point in time. Things could change after the holiday.

With theie higher bids, packers purchased 103.6% of the moving average daily purchases of Index hogs. They didn't do that well in their total hog purchases. They came in at 94.5% of the moving average daily purchases. Maybe that is why they were bidding index hogs up - they could get hogs from the other categories.

Still long the NNNs and QQQs. In fact I added a handful of NNNs on the dip this morning. Have made a trip to the bank with a point on one of them already.

Best wishes,

dhm

PS: Did you have your hooks in the water for the early morning move, ITZ, OR were they still in the trunk of your car?