5/22/15 was down -0.15 to 82.83. That is very much in line with the model's projection. The MMMs are now premium to the component by +0.32. I'm suspecting the MMMs will have to cough up a little by the time we get to cash settlement.

Am I short the MMMs?

Nope!!

Just have this feeling but have been burned so many time when I get a directional bias going that I am on the sidelines relative to the MMMs. My bias is often a good fade so it may be time to get long the MMMs. I was able to scalp a couple of MMMs this morning, though. Nothing big just enough to buy a Big Orange or two.

The six-day moving average carcass was steady this morning at 213.50#. That is -3.02 compared to last year but + 6.57# compared to 2013. My read on this is that producers are very current in their shipments and packers are not comfortable killing heavier hogs. Packer hogs are running 3.62# heavier than non-packer hogs.

Best wishes,

dhm