4/28/16 was up 0.51 to 70.73. That makes the MMMs premium to the component by 10.12. Traders just seem to want to keep it in the ten buck range. I have noticed fairly often when we have a wide "Gap" that persists for a while that there will be a limit move to partially or nearly close the "Gap". The environment may be right for that to happen to the MMMs this spring.

I have learned not to try to second guess when that is going to happen so I won't be betting the farm on it.

The six-day moving average carcass weight firmed to 214.39#. That is +0.66# year/year. Packers hogs continue to be heavier now by 3.50#. The number of packer hogs in the kill yesterday dropped quite a bit but they were heavier. Index hogs continue to be lighter at 212.68# which was a bit heavier.

Bellies have been losing a lot of ground this week. Cutouts have been holding up all right in spite of the weak bellies. I think that means demand is fairly robust for the other cuts.

I'm still friendly to the long K/M spreads below 3.50. This morning I piled four on my boat and will pile more on below 4.00. Earlier in the week I was able to almost totally unload the K/M spreads. Now I have a fair inventory again and my bank account is a bit fatter.

Best wishes,

dhm