5/13/15 was up +$0.60 and the model projects that the CME Lean Hog Index component on the 5-13-15 kill will move up between +0.70 and +1.00. It appears to me that packers have quite an inventory of hogs purchased at various prices and it is quite a challenge to project which batches at what price they will choose to kill on a given day. Generally, though, the Hog Pricing Model does a fairly good job of

Ka! Ching!! Ka! Ching!! Ka! Ching!! Ka! Ching!! Some traders were willing to pay my price this morning and I uncluttered the decks from most of the K/M spreads. I think there are still a couple that I will worry about tomorrow after the KKKs go to cash settlement. My boat would be riding high in the water and bobbling along like a cork were it not for a bunch of Q/V spreads keeping it fairly low in the water.

Let's see, now, where was I - - -

Oh! Yes! The Hog Pricing Model does a fairly good job of projecting which batch of hogs the packers will choose to kill on a given day. Some days it gets blind sided but that is just the way it is.

Packers were wanting hogs yesterday and jumped their bids to get them. Producers obliged and so packers got 103.8% of the moving average daily purchases. That should keep the scheduled number up fairly well today.

The model is still projecting that the cash settlement index for the KKKs will be 81.69 with a range of 81.19 to 82.19. I see little reason to sell the long KKKs I have nor do I see much to be gained from buying more. I'm just going to be happy with the way the KKKs and K/M spreads have treated me this year.

Farmer Ed says, "Christmas in May".

Best wishes,

dhm