a little time looking at the historical behavior of the JJJs after they become front month. On average over the past seven years the index has declined from this date until the JJJs go to cash settlement by -6.06. The steep decline of -30.45 in 2014 was the major cause of this decline. If that year is taken out of the mix, the average decline was -1.92. The maximum gain was 5.32 in 2012.

With the JJJs trading premium to the component by 4.65, traders may have priced in any upward movement that may occur in the Index.

Doing this historical review, it tended to cool any bullish sentiment that I may have had. There will still be plenty of scalping opportunities. That is just the way the hog market works.

Best wishes,

dhm