6/14/16 was up 0.20 and the model projects that the component on yesterday's kill will be up between 0.25 and 0.55. This will be the other half of the cash settlement index. The model projects that the cash settlement index will be 81.58 IF the component is up 0.50. The component will need to jump 0.70 to bump the index up to the 81.675 where the MMMs settled yesterday and the numbers are saying, "That is NOT going to happen"

But the hog market can dish out surprises!

BIG time.

At this point it appears that riding short MMMs into cash settlement was the way to go especially if you got short a couple of days ago when the MMMs were flirting with the idea of going above 83.

Packers did not get a very strong purchase yesterday at 91.1% of the moving average daily purchases but they did well on Monday getting 125.5% of the moving average daily purchases.

Best wishes,

dhm