5/15/17 was up +$0.79 and the model projects that the component on yesterday's kill will be up between +0.85 and +1.15. With their higher bids, packers purchased 85.4% of the moving average daily purchase of index hogs. It continues to appear that packers may have pulled hogs forward a little and the kill continues to come in lower than projected. The 201 report yesterday showed that packer-owned hogs is making up a higher than usual percentage of the kill.

The MMMs settled premium to the component by 4.84. If the usual spring pattern is followed, we will get a pull-back in the index following the Memorial Day demand surge followed by a rebound as retailer begin filling their cases for the Independence Day demand bump-up. The weakness in the MMMs yesterday may have been traders anticipating some weakness in the index. Perhaps a dip to the 74 to 75 are might happen.

I didn't get the component change posted yesterday. It was up 1.03 and it ls like the cash settlement index for the KKKs will be 71.94. The KKKs last settled at 71.90 so there really was little to be gained by riding a KKK pig into cash settlement, long or short.

Best wishes,

dhm .