4/24/17 was down -$0.39 and the model projects that the component on yesterday's kill will fall another -030 to -0.60. Day-after-day we continue to see the component shed a half point or so. The cold storage report showed quite a draw down in both beef and pork stocks. I suppose that could lead to a little rally today or maybe the rally came yesterday in anticipation of the report. Looking at the heavy carcass weights, high kill rate and weaker cutouts, the KKKs might take a hair cut by the time we get to cash settlement. They are settled premium to the component by 4.15. That "Gap" will most likely become bigger when we get the revised component this morning.

I'm flat the KKKs but do have some short MMMs that may get covered this morning. The calendar spreads were better to me yesterday.

Best wishes,

dhm