4/28/16 was up +$0.69 and the model projects that the CME Lean Hog Index component on yesterday's kill willl move up between +0.45 and +0.75. Both the CME INDEX and the Purchase Index seem to be on fairly strong up-trends now. Each time the index shows a little firmness, traders bump the MMMs up and the "Gap" holds around the ten point area.

It settled last night at 10.56.

That's a bit wide in view of the fact that on average over the past twelve years the Index has gained 2.14 from this date until the MMMs go to cash settlement. But some years the Index goes crazy wild and heads for the moon.

Packers made only a fair purchase yesterday at 93.8% of the moving average daily purchases. Packers seem to have a good appetite for hogs right now.

And producers seem to have the hogs to ship. I say that because the carcass weights are holding up well.

Best wishes,

dhm