6/26/17 was, as expected, up +0.60 to 91.40. The NNNs are now trading discount to the component by -4.70 and the QQQs are at a whooping discount of -13.03!!

The 6-day moving average carcass weight eased to 207.26# and that is not surprising considering the warm weather. That is -1.89# yr/yr. Does this mean that producers are very current in their shipments? Index hogs were also mildly lighter at 207.74#. Packer hogs are -1.94# under non-packer hogs. The number of packer hogs killed yesterday was strong again. It appears to me that packers are having a challenge finding the hogs they need/want, they are turning to their own barns and bringing in a few extra thus lowering the carcass weights. Yesterday the weight of packer hogs was steady while non-packer hogs dipped about 1/3#.

I surely don't know where hog prices are headed. I search the data looking for clues. Over the weekend I made a summary that you might like to re-read:

http://murico.com/muricocgi/bbs62x/newforum.pl?page=1;md=read;id=3784

While it is true that we have more hogs than one-year ago, they are lighter in weight AND there seems to be a lot of hungry mouths wanting to stuff pork into them. Do lighter weights mean hogs have been pulled forward? If it does, maybe the kill will continue to fall short of expectations for a few weeks until the spring pig crop begins to come to market.

I still have a few long NNNs and one long QQQ but mostly I am spread.

Best wishes,

dhm