From the afternoon reports the model projects that the component on today's kill will drop between -0.65 and -0.95 and the cash settlement index for the NNNs will be 79.97 with a range of 79.72 to 80.22. Generally on the day before cash settlement packers have figured out where their bids are and take the futures very close to where the cash settlement Index will be.

Sometimes there is a final day move and if this is one of them, the model says it will be to the down-side. So I am going to cash settlement with a handful of short NNNs. As near as I can tell, there is very little risk of much of an up move.

Best wishes,

dhm