4/5/16 was a bit stronger than the model projected coming in +0.39 putting the component at 66.50. That has cut the "Gap" to +0.97 with the JJJs being premium to the component. The up-trend in both the CME Lean Hog Index and the Purchase Index is fairly strong. I believe it is strong enough for the Index to push the JJJs up a point or so between now and when we go to cash settlement.

So -

I added another long JJJ pig this morning at 67.475. It is my intention to over-lay this long position with scalping trades if good set-up come along.

The six-day moving average carcass weight moved up to 214.27#. That is -0.24# year/year. Packer hogs tacked on nearly a half-point while the non-packer hogs were close to unchanged. Index hogs trailed at 212.82#. That was a tiny bit higher. It appears to me that producers of index hogs are more current in their shipments than the rest of the producers and this may be mildly supportive of the index in the near term.

Calendar spreads are very calm today. Maybe it is time for me to go work in my garden and put trading on auto-pilot.

Best wishes,

dhm