4/25/16 was UP +$0.46 and the model projects that the CME Lean Hog Index component on yesterday's kill will be up between +0.25 and +0.55. It appears that we have the spring up-trend in place and the traders have priced it into the MMMs with them trading premium to the component by 9.59. The weakness in the MMMs has closed that a bit this morning and the 201 report will probably close it some more.

Still, the "Gap" is a bit above average for this date.

Packers did not set the world on fire with their paying higher for hogs yesterday. They purchased 95.9% of the moving average daily purchases which is not bad but they had to pay-up to get them. Cutouts were firm so packers seemingly had enough money to be be able to share with the producers of Index hogs.

Ka!! Ching!! Just made a deposit from another long K/M spread. Most of the ones I bought yesterday have now been turned into green. I now have some space on my boat to buy again if a fire-sale is going to be held in the K/M pit again today. I have plenty of other spreads so I don't need to chase the K/Ms.

Best wishes,

dhm