5/5/17 was up 1.11 to 65.30. The KKKs are trading premium to the component by 4.35. It takes and average daily gain of 0.93 by the component to close that "Gap". Packers have been aggressive in buying hogs and there is a good chance they have met their Memorial Day holiday needs and will be a bit less aggressive in buying hogs and the KKKs will end up coughing up a point or two.

So -

I have started getting short some KKKs to take to cash settlememt. Sold one this morning and am waiting to see if there is a spike to sell more.

The six-day moving average carcass weight was steady this morning at 212.67#. That is -1.38# year/year. Index hogs are a bit lighter at 212.30#. Packer hogs are a bit heavier by +1.52#. It appears to me that the strong bids last week pulled hogs forward mildly. The percentage of packer hogs in Friday's kill was higher than usual. Maybe they have been anticipating this and have let their hogs get a bit heavier to add pork.

This morning I have had a little success scalping the MMMs. There is not enough volume for me to scalp the KKKs. There isn't anything happening with my boat load of calendar spreads today.

Best wishes,

dhm