4/26/17 was down -0.25 to 59.59. The model was projecting a possible decline but not quite that much. The numbers suggest that packers still have an inventory of cheaper hogs purchased that will pressure the component lower for a day or two even if they are now bidding higher. The surge in the KKKs and MMMs has opened the "Gap" to 7.36 for the KKKs and 13.41 for the MMMs. That is a mighty wide "Gap" for the KKKs. There is enough time for the index to move up and close the MMM's "Gap" but the KKK's "Gap" looks a little bloated to me.

The 6-day moving average carcass weight was steady at 213.61# with both packer and non-packer hogs being steady. Packer hogs continue to be heavier by +1.78#. Index hogs were were a bit lighter at 212.94#. Perhaps index hog producers are more anxious to keep current in their shipments. If they are more current and packers develop an appetite for hogs, it could cause the Index to move up more quickly.

I have been too timid to try scalping in today's market and am content to let some spreads work. Was able to take profits on two long N/Q spreads. There are plenty more of them on my boat if anyone happens to need some but I don't think it is overloaded.

Best wishes,

dhm