5/26/16 was down -0.36 to 78.06 putting the MMMs premium to the component by +2.12. Historically on average from this date until expiry the index has dropped -0.25. Having a premium of +2.12 seems a little wide but packers can bid hogs up that much in a couple of days if they get hungry for hogs.

The six-day moving average carcass weight moved up to 212.82# this morning. That is -0.64# year over year. Index hogs continue to be lighter at 211.44# and were a bit lower this morning. Packer hogs are only +0.76#. It appears that packers have been liquidating their inventory of market hogs.

Bet wishes,

dhm