down -$0.44 and the model projects that the component on the 5/29/15 kill will drop between-0.15 and -0.45. Even with lower bids, packers were able to make a very large purchase of hogs - - - 152.8% of the moving average daily purchases. This may mean that producers were very willing sellers and they may be willing sellers because they have plenty of market ready and near-market ready hogs in their barns.

Historically the CME Lean Hog Index does not usually gain much between now and the MMMs going to cash settlement.

With the MMMs trading premium to the index by 1.90, traders must be thinking there will be some strength in the Index this year. Sometimes traders are wrong! If we get a little more bounce, I'm selling the MMMs.

Best wishes,

dhm