4/14/14 was down -$1.85 and the model projects that the CME Component on the 4/14/14 kill will decline by something like -1.35 to -1.65. The VVVs are running a huge discount to the Index - 18.15. One-year ago the VVVs went to cash settlement at 90.62 so I suppose if hogs begin to flow more freely the CME Index could collapse to where the VVVs are trading.

After all there are still forty trading days before we get to cash settlement with the VVVs and at a buck or more a day, a lot of change can take place in forty days. The VVVs have me on the sidelines right now but I do have some short Z/G spreads and a couple of long K/Ms.

Best wishes,

dhm