7/9/19 was down -0.36 to 70.60. The NNNs settled premium to the component by +1.15. It didn't help producers much yesterday for the cutouts to take a -$2.17 hit. I just have this feeling that packers are going to be careful with their money for a few more days. And there are only four days of data to come in to get us to cash settlement for the NNNs. I'm still short and may take them to cash settlement.

The afternoon purchase index as actually up +0.13 but the model projects the component on yesterday's kill will ease between -0.20 and -0.50 because it appears packers still have quite a few cheaper hogs that will keep the component under some downward pressure for another day or two.

The kill is still coming in unusually strong for this time of the year and the hogs continue to be heavy so packers have a lot of pork to move out.

Best wishes,

Doc