MURICO.com Forum

The final Purchase Index for - - -

4/24/15 was up +$0.59 and the model projects that the CME Lean Hog Index component on the 4/24/15 kill will be up between +0.40 and +0.70. This keeps the spring price advance intact. The MMMs are trading premium of to the component by 14.35. On average over the last 11 years, the index has gained 4.12 from this date until the MMMs go to cash settlement. It did gain 21.07 during that period in 2013 and in only one other year did it gain more than 14.35.

I continue to think that the MMMs may give up a few points between now and cash settlement.

The K/M spread needs to gain a little or else I will be eating beans and rice with no ham.

Best wishes,

dhm