5/6/15 was up 1.58 to 76.76. That was a bit more than the 1.30 max the model projected. The KKKs were a bit weak today so its premium over the index has now dipped to 3.09. From the noon reports my Hog Pricing Model is projecting that the component on today's kill will jump another 1.00 to 1.30. At that rate there won't be much "Gap" left to close. It appears that being long the KKKs might work but in the hog market as our departed friend Long Bear often said, "You can expect the unexpected".

The model is projecting that the cash settlement index for the KKKs will be 82.31 with a range of 81.81 to 82.82. This might be a year when packers get their holiday needs met in front of the KKKs going to cash settlement then let the air out of their bids right in front of KKKs expiring.

"You pays yer money and takes yer chances", according to Blind Hog. I think I will pay a little more money and take another chance on aother long KKK.

Best wishes,

dhm