3/29/17 was somewhat weaker than the model proj-2.95osed to projected being down -0.74 to 68.50. With the JJJs being a touch firm, the "Gap" is now closed to -2.95 with the JJJs at a discount to the component.

The 6-day moving average carcass weight firmed to 213.04#. That's -0.66# yr/yr. Producers are staying quite current in their shipments. Index hogs were also a bit heavier at 212.32#. Packer hogs were heavier than non-packer hogs by +3.20#.

Packers have dropped their bid prices an average of -0.37 per day for the last 8-days. Perhaps the larger drop yesterday was getting some of the "Heavy Work" done and the rate of decline will now slow. Making that assumption and reducing this average decline by 25%, the model projects the cash settlement index for the JJJs will be 65.28 with a range of 64.78 to 65.78. I am taking this to mean we are in a trading range so I have been scalping from the short side selling rallies and buying dips. I am happy with the results I am getting.

Some traders were wanting to lighten their load of calendar spreads so I have been able to get several off my boat today. With H&P report coming out, I happy to have my boat riding a bit higher in the water

Best wishes,

dhm