4/1/16 was up +$0.40 and the model projects that the CME component will move up between +0.10 and +0.40. With their higher bids on Friday, packers were able to make a solid purchase of 122.2% of the moving average daily purchases.

Last week's kill came in just about as expected at -0.41% year/year. With the 6-day moving average carcass weight for Index hogs trailing the rest of the hogs, it is possible the the supply of index hogs is a bit weak.

The JJJs have been beat down a bit; the seasonality is pointing higher; the "Gap" is a bit wide at +2.12 with the JJJs being premium; Cuts outs are just so-so.

My bias is that JJJs are more likely to go up a little rather than go down a lot. I am flat the JJJs but will buy on a dip.

Best wishes,

dhm