6/4/19 was up +0.08 and the model projects the component on yesterday's kill will be down between -0.20 and -0.50. Packers still have an inventory of hogs purchased at lower prices that may keep the component weak for another day or two. Generally the Index will rally a bit as the retailers begin stocking their cases for the Independence Day holiday grilling.

With their firm bids, packer ware able to purchase 99.7% of the moving average daily purchases of total hogs by the time the afternoon reports were posted and 106.0% on the index hogs.

With the prospects that the Index will bounce as we get closer to the cash settlement of the MMMs, perhaps it is time for me to cover the short MMMs.

Best wishes,

Doc