4/7/16 was UP +$0.06 and the model projects that the component on yesterday's kill will creep up between +0.05 to + 0.35. The premium the JJJs have been carrying to the component has now been cut to 0.50 and it is highly likely some of that will go away when the 201 report comes out this morning - unless the JJJs rally and the pre-opening bids are suggesting that the JJJs will rally.

It has been my feeling that the rising index would push JJJs up a bit. Today it appears we will see the firm index provide some support to JJJs. Maybe not much but any that occurs in the JJJs will be welcome by me since I am long the JJJs.

The mildly firm bids by packers yesterday did not translate into a strong purchase. They only rounded up 85.4% of the moving average daily purchases. If demand holds, packers will higher purchases than that. The six-day moving average carcass weights are moving higher so there is nothing yet to suggest that the hogs are not there if packers just sweeten their bids enough to attract the hogs.

Yesterday I piled a couple more long Q/V spreads onto my boat. Now I am wanting to get some of them off and not have to add more on another dip.

Best wishes,

dhm