5/5/15 was UP +1.22 to 75.18 putting the KKKs at a premium of 5.28 over the component. With seven more days of data to come in before cash settlement, it will take an average gain of 0.65 to get the index up to where the KKKs are trading. Over the past six days the component has jumped an average of 1.38 per day. I don't know what is going to happen but there seems to be enough price activity going on to move the index up enough to close the "Gap".

The six-day moving average carcass weight was a bit weaker at 213.34#. That is -3.64# year-over-year. Packer hogs were up a little and non-packer hogs were down a little. The percentage of the kill coming from packer hogs continue to be a bit stronger than it was last year suggesting that packers have expanded a bit more than non-packers.

The number of hogs scheduled is only 2.60% above one-year ago. With the holiday coming up and considering the numbers reported in the last H&P report, 8.0% would be in line with the report. Packers may be keeping their bids firm again today.

I'm still wanting to sell some K/M spreads but the buyers are not willing to step up to the plate and take any off my hands.

Best wishes,

dhm