4/11/17 was down 0.49 to 63.91. The JJJs are now trading discount to the component by -1.34. The model projects that the cash settlement index for the JJJs will be 62.72 with a range of 62.22 to 63.22. There seems to be little to be gained by going to cash settlement. Nor does there seem to be much risk in going to cash settlement. Using the model as a tool, I will continue to scalp the JJJs.

The six-day moving average weight was steady this morning at 213.33#. Packers are getting more current by running more of their hogs through their plants. Packer hogs are only 1.76# heavier than non-packer hogs now.

The K/M spreads really came alive the last couple of days. I don't ever remember seeing as much action as they have shown the past couple of days.

Best wishes,

dhm