7/14/14 was up $0.60 and the model projects that the component on the 7/14/14 kill will jump between +0.35 and +0.65. The weakness of the HEN4 has its premium to the index closed to 0.30. The CME component of today's kill will give us 50% of the cash settlement index. With the high probability that the component on today's will be up, I intend to take some NNNs to cash settlement. I bought a few more this morning when they dipped to the 133.15 area.

The kill last week was down 8.96% from the same week last year. Yesterday's kill was also weak. That does not seem to be a scenario that will give packers the luxury of cutting their bids. Packers did get a solid purchase yesterday of 104.2% of the moving average daily purchases but they had to keep their bids firm to get those hogs. There is a good chance that will be the case again today.

Best wishes,

dhm