5/17/16 was up +$0.74 and the model projects that the CME Lean Hog Index component for yesterday's kill will be up between +0.45 and +0.75. Let there be no doubt about it; the Purchase Index and the CME Index are still trending higher.

It caught my attention to note that with their higher bids yesterday, packers were only able to purchase 85% of the moving average daily purchases. And the fact that cutouts dipped by -$0.23/cwt did not go un-noticed! With the MMMs trading premium to the component by +5.35, the "Hog Bulls" are facing a lot of head wind but it is a mountain that can be climbed IF demand wants pork.

I'm not a MMM bull but I saw just saw a scalping set-up and bought a pair at 82.275. They won't hang around very long.

Best wishes,

dhm