6/30/17 was up +$0.71 and the model projects that the component on Friday's kill will jump between +0.45 and +0.75. Friday the NNNs settled discount to the component by -1.11 and the QQQs were discount by -7.98. A good part of the "Gap" the NNNs are showing will evaporate this morning when the 201 report comes out but the QQQs will still be at a significant discount.

Packers made a solid purchase of total hogs at 103.9% but the only purchased 87.1% of the moving average daily purchases of Index hogs even though the were throwing more money at pork market formula hogs. They were pretty stingy on their bids on the negotiated hogs. With the holiday coming up, they probably did not want to buy-up a lot of hogs. Never-the-less, money seemed to flow freely to the producers who sell on a market formula.

Cut outs were strong Friday at 102.92. That's +13.65 year/year. The index is only up 7.98 year/year so it appears that packers are really cutting their melon right now with the high priced cutouts.

Still long the NNNs and that one lone QQQ.

Best wishes,

dhm