5-5-15 was up +$1.42. The model projects that the CME Lean Hog Index component on the 5-5-15 kill will be up between +1.10 and +1.40. The up-trend we have been on since 4/2/15 remain intact. In fact, it may be getting stronger this past week.

Yesterday packers made only a fair purchase at 86.6% of the moving average daily purchases. The number of hogs scheduled yesterday was below expectation at a measly +0.12% over the same day last year. There is a good chance that these two factors will keep packers bidding firm today.

The KKKs are premium to the component by 5.89 with seven more trading days until we go to cash settlement. It is going to take a lot of strong packer bids to close that "Gap" and the Memorial Day demand just may be what it takes to get the "Gap" closed from the Index side. I bought an extra KKK pig this morning to over-lay the K/M spreads.

Best wishes,

dhm