3/14/16 was up +$0.09 and the model projects that the component on the 3/14/16 kill will change in the range of -0.10 to +0.20 and that adds up to a stable price. Packers were able to pull in the hogs at 101.1% of the moving average daily purchases. An ample supply of hogs and steady to firm demand for the product adds up to reasonably stable prices for hogs.

Traders still feel there is some strength coming to the Index before the JJJs go to cash settlement and have bid he JJJs up premium to the index by 3.98. On average the index does not jump that much between now and when the JJJs go to cash settlement but sometime it jumps much more than that. I believe we are going to see enough volatility to make trading JJJs interesting.

I'm flat the JJJs and prefer to look for scalping opportunities from the long side today.

Best wishes,

dhm