7/1/19 was down -1.07 to 73.41. The NNNs settled premium to the component by +0.32. Packers paid +$0.42 per hog more than the cutouts fetched and they had salaries, utilities and many other expenses to pay on top of that. Not exactly the scenario wherein packers will be sweetening their bids.

The six-day moving average carcass weight eased to 212.00#. That is +4.26# yr/yr. Index hogs were also a bit lighter at 212.07#. Packer hogs are +0
24# lighter than the non-packer hogs.

The Purchase Index for 7/2/19 was down -0.82 and the model projects the component on yesterday's kill will drop between -0.55 and -0.85.

Unless the index goes on a bull run in front of the QQQs going to cash settlement, it appears that the seasonality high has now been posted.

Best wishes,

Doc