6/14/16 was up 0.60 to 81.93. That puts the cash settlement index for the MMMs at 81.62 and that is almost exactly where the MMMs settled yesterday. Not much was gained in going into cash settlement short the MMMs.

But -

Something was gained by getting short above 82 when the model started projecting a cash settlement below 82.

The six-day moving average carcass weight eased to 212.31#, That is -0.45# year over year. Packer hogs are only +0.20# over non-packer hogs. Packers have really been moving their hogs through the plants at a fast clip. It now becomes apparent that packers were gearing up for the lower kill rate by finishing their hogs to heavier weights.

Index hogs were lighter at 210.62#.

Spread traders have really been taking me to school this week as the V/Z spreads soars against my short position.

Best wishes,

dhm