6/9/15 was down -$0.44 and the model projects that the CME Lean Hog Index will drop between -0.15 and -0.45. The MMMs are trading discount to the index component by -0.65. With the Index being on a mild downtrend, I don't see much opportunity for being either long or short the MMMs going into cash settlement. Yesterday I bought two MMMs thinking I might take them to cash settlement but decided to bank one of them this morning and will ride the other for a while.

Packers purchased 93.5% of the moving average daily purchases yesterday. Producers may not be quite as current in their shipments as they were week or so ago although the kill so far this week is coming in quite strong at +9.46% of the same week last year. The data continues to point to firm pork supply and packers did a good job of moving it out yesterday with the cutouts being up 1.50.

I still like being long the QQQs and short the VVVs.

Best wishes,

dhm