MURICO.com Forum

The CME component on the kill for - - -

4/22/15 was another surprise being up a modest +0.09 to 65.23. That puts the MMMs premium to the component by +12.37. It strikes me that is a bit wide so I sold another MMM futures at 78.05. Volatility in the hog market is quite high. One day we are up a couple of points and the next day down just about that much. The K/M spreads are doing me no good today. The spread is not low enough for me to want to buy again and not high enough to take profits on some of the ones I have.

Didn't like the way the MMMs were behaving so when they gave me a chance to scalp out of the newly acquired short with some change, I took it.

The six-day moving average carcass weight climbed to 214.39#. That is -2.98# yr/yr but it is +6.20# over 2013. It was the non-packer hogs that were heavier. Heavy carcasses seem to be the new norm. Packer hog carcasses are running 217.30# compared to 212.91# for non-packer hogs.

The percentage of packer hogs coming to market continues to suggest that packers have expanded more than non-packers.

Best wishes,

dhm