MURICO.com Forum

The CME component on the kill for - - -

6/2/15 was exactly unchanged at 82.39. That doesn't happen very often and the model didn't project it for today. It is quite a challenge to project which batch of hogs packers will run through when they have purchases for 14-days to choose from. The model missed today but generally it does quite well at projecting the change in the CME Lean Hog Index.

The MMMs are now trading premium to the component by 1.21. Traders are now coming around to my way of thinking that the "Gap" is a little too wide and they have been closing it down a little. I had one short MMM that I cashed in this morning but my conviction was not strong enough to get very bearish and besides that, when I develop a fairly strong directional bias I get warped.

The six-day moving average carcass weight eased to 213,51#. That's not much of a change and it is -2.68# year/year. Producers continue to keep current in their shipments, it appears.

Best wishes,

dhm