because the USDA has not posted the morning reports. From the afternoon reports the model projected that the Purchase Index on the 4/8/15 kill would be down -$ 0.41. The CME Lean Hog Index on the 4-8-15 kill may be up a little because packers have some more expensive hogs that are going to moving into the packing plants. It is a bit difficult to project when packers will kill expensive hogs they have purchased and when they will kill the cheaper ones.

With only six more days of data to come in before we get the cash settlement index for the JJJs and the JJJs already premium to the component, it was difficult for me to understand why the JJJs should jump to 63.05.

So -

I sold a trio of JJJs.

For the CME Lean Hog Index to move up to 63.05 for cash settlement, the component will need to jump an average of 0.60/day for the next six-days. Looking at the large numbers of hogs scheduled, the weak cutouts and the firm kill for the last two-days, I don't think that will happen (but it might).

Best wishes,

dhm