5/24/16 was DOWN -0.16 tp 78.78. This is suggestive of a trend change now that retailers have their cases full for the holiday. With a no/low kill day coming up, we know that packers are not going to have a very strong appetite for hogs for the rest of this week and that may embolden then and they will take hogs down a little.

With the MMMs trading premium to the new component by 1.32, there is room for traders to look at that "Gap" and say, "Hey! Wait just a minute! Packers are bidding lower and the MMMs are very short term! Maybe we better reverse course just a little."

So I sold an MMM pig. And will sell again if there is a bit of a rally. Lately there have been so many traders wanting my spreads back that my boat is now riding high in the water. I need to put something on it, thus the naked MMM pig. Generally when I get a directional bias, I get my ears pinned back.

Best wishes,

dhm