6/19/18 WAS up +0.84 and the model projects the component on yesterday's kill will move up between +0.80 and 1.10. Packers still have an inventory of expensive hogs to work through. Yesterday they purchased 96.9% of the moving average total hogs and 107.1% on index hogs. With their higher bids they brought in the hogs. Packers are probably still buying hogs to meet the Independence Day holiday demand surge.

The NNNs are not trading discount to the component by -4.62. On average on this date the "Gap" has been -0.57. The high was +8.61 set in 2014 and the low was -5.76 set on this date in 2012.

Best wishes,

dhm