yesterday's kill was even stronger than the model projected being up +0.86 to 70.22. Traders are not being timid but have jumped on board enough to keep the "Gap" at +9.78 with the MMMs premium to the index.

The six-day moving average carcass weights moved up to 214.30# which is +0.53# year/year. Packers hogs were a little lighter and all of the weight gains came from non-packer hogs. Index hogs were lighter at 212.55# however that was up mildly from yesterday. This is not hinting that the supply of hogs is tight so demand must be firm. And that showed up a little in the cutouts yesterday and the day before.

Spread trading has been more active than usual the last couple of days and that is low stress stuff as usual.

Best wishes,

dhm