7/3/17 was up +0.55 to 92.23. That essentially puts the NNNs in lock-step with the component. The QQQs are settled discount to the component by -7.56. The component being
so strong was not quite what the model projected.

The six-day moving average carcass weight eased to 207.13#. That is -2.13# year/year. Hot weather is probably slowing growth but I think producers are also super-current in their shipments. Index hogs were also lighter at 206.95#. Packer hogs were -1.29# Lighter than non-packer hogs. Packer hogs made up 37.25% of Monday's kill. Usually packer hogs are closer to 32% of the kill mix. It might be that packers have expanded their vertical integration. I have been thinking that packers are pulling their hogs forward and liquidating some of their inventory of market ready hogs and I still think that is what is happening.

Still long the NNNs and a lonely QQQ pig. As usual I have calendar spread trades all over the place. Some are working for me and some are working against me. But that could change tomorrow.

Best wishes,

dhm