6/19/18 was up 0.80 to 85.49 . The NNNs are now trading discount to the component by -5.32. It had been somewhat lower but the NNNs are in a mild rally mode now.

The six-day moving average carcass weight eased to 209.16#. That is +1.37# yr/yr. Index hogs were lighter at 208.58#. Packer hogs were steady and +2.04# heavier than non-packer hogs.

Over the past 200-days packer hogs have been 33.13% of the hogs processed. The percentage has jumped to 36.72% over the past 6-days. With packers shipping a higher percentage of the hogs and having them significantly heavier I think tells us that packers are expanding their production capability. Yesterday the percentage of packer hogs exploded to 44.4%!!

As I look at the sell-off in the outright contracts, I'm glad that I am trading spreads.

Best wishes,

dhm