3/23/16 was down -$0.16 and the model projects that the component on yesterday's kill will drop between -0.10 to -0.40. The JJJs are now trading premium to the component by +3.85. On average over the past 6-years from this date to going to cash settlement the index fell -2.84.

Cutouts are holding up well. Carcass weights suggest producers are quite current with their shipments. The kill rate is about as expected - maybe a little less but in the ball park.

This has me thinking that the index may be fairly stable for a while. But the JJJs are priced for a major run-up in price. My bias is that something is going to trigger a sell-off in the JJJs so they can run in lock-step with the component as we move toward cash settlement in just 15 trading days.

The H&P report tomorrow might be that trigger point.

I sold two JJJs at the opening this morning.

Best wishes

dhm