5/10/16 was up 0.37 to 78.78. The MMMs have now gone premium to the component by 6.89. On average over the past twelve-years from this date until the expiration of the MMMs the index has gained 0.61. In 2012 the index surged by 15.09 and in 2010 it dropped -10.88. This tells us that at this time of the year the price of hogs can make some "Industrial Strength" moves. From the supply side, it appears there are ample numbers. If there are a lot of hungry mouths in China, that can make a difference.

This morning the 6-day moving average carcass weight dipped to 213.87#. That is +0.75# year over year. Index are lighter at 211.89#. Packer hogs dropped nearly half a pound and the percentage of packer hogs coming to market is on the higher than usual side of the equation.

The fact that packers were finishing their hogs to a heavier weight had me thinking that packers had an appetite for more product. I didn't think the MMMs would run-off and leave the KKKs like they did this morning although I knew from previous years that it might happen.

Like Blind Hog says, "You pays yur money and takes yur chances."

Best wishes,

dhm