4/26/16 was even stronger than projected by the model being up 0.62 to 69.36. Seemingly that much strength caught the market by surprise and traders have responded by tacking 1.275 onto the MMMs. So the MMMs are holding firm with a premium of 9.71 over the component and 3.00 over the KKKs.

The 6-day moving average carcass weight moved up to 212.37# with both packer and non-packer hogs being heavier. These heavy weight are +0.35# year over year. Packer hogs are now +3.51# heavier than non-packer hogs and index hogs are lower at 212.37#. I continue to think that the lighter weight index hogs indicates that producers of index hogs are more current in their shipments than the rest of the industry and may be constructive for the the index.

Looking at the "Gap" traders are really planning on something pumping the index up.

This morning I had my boat parked at the dock looks for some spreads to pile on. A fire sale developed for the K/M spreads so i picked up a couple and before I could get started across the pond, they were gone and I had to hurry to the bank. Not only were they gone but also took profits on three long N/Q spreads.

Spreading was very good this morning.

Now I'm still at the dock trying to re-load.

Ka!! Ching!! Ka!! Ching!! Just sold two more of the long K/M spreads.

Maybe I will be able to load my boat with some short V/Z spreads today.

Best wishes,

dhm

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