to run a correlation between the cutouts and the CME Lean Hog Index. My feeling is that it is quite low. Several weeks ago when packers' gross margins were in the RED, it was fairly obvious that packers were going to be anxious to get their cost of pork down. Now that cutouts have rebounded, they are not under quite as much pressure.

The reports from the USDA gives us better fundamental data in the hog market than is available in any other market but most of our data is supply side data. Consider this:

On Friday about 1957 cars of pork were produced and the USDA reported the primal cut prices on a bit less than 280 cars or about 14% of the day's pork production. So we have no idea what the packers' margins were on more than 85% of the pork they sold. We are fighting a fight with one arm tied behind us!!

Best wishes,

Doc