5/9/16 was up +$0.10 and the model projects that the CME Lean Hog Index component on yesterday's kill will scoot up between +0.30 and +0.60. Even though packers were not bidding much higher, they still have a fair-sized inventory of hogs purchased at higher prices that very possibly are going to push the component up more than the Purchase Index number might suggest.

Packers made a more or less "Normal" purchase at 97.9% of the moving average daily purchases. Producers seem to be moving out hogs at a brisk clip and packers are killing a few more hogs than projected from the H&P report, the firm carcass weights has me thining that the supply of hogs in producers' barns is quite high. This may create some headwinds for the MMMs to get higher after packers meet their Memorial Day holiday demand surge.

I suppose I should -

Whoops! Was just interrupted by a trip to the bank to deposit the profits from three spreads that I just got off my boat. Someone else wanted them more than I.

I started to say I suppose I should get short the MMMs but that would mess up my spread portfolios. I may find I will be plenty short Friday when the long KKKs expire out of a bunch of long K/M spreads. So I will be patient and wait and see what happens there.

Best wishes,

dhm