is going to require some strong bidding by packers to close the 7.54 premium that traders have pumped into the KKKs. The model projects that it will take an average daily jump in the component of 0.66 to close the "Gap". That strikes me as being a fairly high mountain for the index to climb. If the component on today's kill comes in about unchanged as the model is now projection, then the average daily jump moves up to 0.725.

I'm not willing to short the KKKs at this point but I'm NOT buying them, that's for sure!

Best wishes,

dhm