6/28/17 was up +0.10 to 91.70. That is very much in line with what the model projected. The NNNs are trading discount to the component by -2.63 and the QQQs are way-down with a "Gap" of -10.48. With demand holding strong, there is a good chance that the QQQs are going to tack on a few points before they go to cash settlement. The NNNs may end up higher than they are now also.

The 6-day moving average carcass weight was steady this morning at 207.20#. That is -1.88# yr/yr. It continues to appear that producers have pulled hogs forward a bit and they are very current in their shipments. Packer hogs are -1.87# under non-packers. Packers have moved a lot of hogs out of their barns this spring and early summer. Index hogs are at 207.31#. Index hog producers seem to be bringing their hogs to market is a fairly consistent manner lately. Earlier in the year I think the got very current in their shipments. Perhaps they were concerned that the market was going to collapse from over supply. Now they have come to realize that there is not a glut of hogs relative to demand and they are producing hogs according to plan now that over-supply emotions are put to rest.

I turned eight long Q/V spreads into "Green" this morning. There are still plenty more on my boat if someone needs them. At the same time I have plenty of room on my boat to take on more. Perhaps it is a good idea to wait until tomorrow to think about adding more. One never knows the reaction there will be to the H&P report. Personally, I think it will be friendly to the near contracts. The pigs are already in the finishing pens for the NNNs and QQQ and the data seems to be suggesting that the numbers will not be burdensome in view of the strong demand we are now seeing.

I will go into the report long a few NNNs and I still have that one QQQ.

Best wishes,

dhm

PS: Like Farmer Ed, I talk hogs better than I trade them. That does not mean that I trade them poorly. I just don't have the spine to really pour it on when the numbers line up.