5/11/17 was ip 1.14 and the model projects that the component on the kill for 5/11/17 will climb between 1.20 and 1.50. This will be 50% of the cash settlement for the KKKs. It appears that there is little incentive to go to cash settlement with a KKK pig. They seem to be appropriately priced relative to the index.

With their higher bids yesterday, packers only purchased 62.4% of the 5-day moving average daily purchases of Index hogs. Index hogs seem to be in tight supply. Packers may have a few extra heavier hogs that they can (and seem to be) run through their plants. Generally there is some weakness in the index following the pre-Memorial DAy demand surge. This tendency is very strong and I see nothing in the numbers to suggest it will not play out again this year. The MMMs don't HAVE to follow the index lower if it dips but chances are quite high that they will. Following this dip, there tends to once more be a demand surge as retailers stock up for the Independence Day holiday.

Today I am going to see if I can find a set-up to sell the MMMs and scalp out on a dip.

Best wishes,

dhm