6/29/17 was up $0.26 and the model projects that the component on yesterday's kill will be up between +0.25 and +0.55. With their higher bids yesterday packers were able to purchase 98.7% of the moving average daily purchase of index hogs. On total hog purchases they did better at 128.8% of the moving average daily purchases. Even though the kill is running ahead of last year, packers seem to be able to move the product at a nice margin and they are bidding up to see who gets to kill the hogs.

If the report yesterday was bearish, it appears that somebody forgot to tell that to the packers because they were still chasing hogs.

The NNNs settled discount too the component by -2.23. If NNNs are going to go into a tail-spin, very shortly packers are going to need to stop this higher and higher bid stuff because there are only 11 more trading days until the NNNs go to cash settlement.

I went into the report with some long NNNs and one long QQQ. The pre-opening is not telling me that I made a mistake.

But that can change in a hurry when the "Big Dogs" go to work around 10:00.

Best wishes,

dddddddhm

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