shows that packers have nearly 2.1 million hogs scheduled. The is 192K over the same date last week but 169K below the same date last year. Hogs are getting to be in short supply just like everyone has been expecting because of the PED virus. The shortage of hogs is pushing the CME Index higher than 50% of the traders were expecting causing some coverage by those holding short positions.

From the noon reports the model projects that the Purchase Index for today will once more be up. On average over the last ten years there is some weakness in the Index between now and when the NNNs die. It appears there is a good chance that this year is going to be somewhat like 2005 and the Index will show some strength going into expiry.

Best wishes,

dhm