5/7/15 was up +0.74 to 77.51. The strength in the KKKs this morning has opened the "Gap" to 3.29. The model now projects that the cash settlement index for the KKKs will be 80.70 with a range of 80.20 to 81.20. It just might be that the Big Boys with better knowledge have now taken the KKKs very close to what will be the cash settlement. If that is the case, I have a boat load of KKKs that I bought on the dip this morning that may give me a few tics. So far it does not appear that they will earn me a trip out behind the wood shed.

The six-day moving average carcass weight was firm this morning at 213.39#, That is -3.52# below the same date last year. It continues to appear that producers has become very current in their shipments. Both packer and non-packer hogs were a bit heavier this morning. Packer hogs are running about +4.57# heavier than non-packer hogs. I suppose that means packers are wanting heavier hogs.

The swine scheduled for delivery report shows that packers have 3.67% more hogs scheduled today than on this date one-year ago. That not as many as suggested by the last H&P report. It is also 71K lower than the same date last week.

The K/M spread has now traded at -3.00. I'm waiting for a better bid to ring the till again.

Best wishes,

dhm