3/17/15 was down -0.40 to 63.90. The JJJs are discounted to the component by -2.52 and the MMMs are premium to the component by 11.68. My bias of being long the J/M spread continues mostly because I think the MMMs are prices too high.

So in addition to being long the J/M spread, I am also short some MMMs.

As it turns out this morning, I should have also been long the MMM cattle but have chosen to stand aside from the cattle for right now.

The six-day moving average carcass weight was unchanged at 214.38#. That is +0.05# yr/yr. Looking at the way producers are running hogs to market, there is a good chance that we are going to see the carcass weights begin coming in lighter than last year. If that happens, it will dampen the effects of the expansion that is now taking place.

Best wishes,

dhm