5/16/17 was up 0.81 to 74.55. The MMMs are now trading premium to theiday. If we do not get the "Usual" dip in the index following the Memorial Day price surge, then the index will most likely push then MMMs up several points. So far the numbers are not pointing to a dip on the horizon.

The 6-day moving average carcass weight eased to 210.98#. That is -2.23# year/year. Packer hogs are heavier than non-packer hogs by 1.29#. It appears that packers are now moving their heavier hogs to market. Index hogs are lighter at 210.90#. A couple of weeks ago index hogs were at 213.84#. This is good growing weather so I think the draw down in carcass weight represents hogs being pulled forward.

On the dip we are now seeing I have chosen to buy the MMMs and will buy more if it dips further and here is why:

- The falling carcass weights suggest that hogs have been pulled forward.

- The lower than expected kill rate is beginning to suggest that the inventor of market hogs is below that suggested by the last H&P report and

- The firmness in the cutouts suggest that demand remains firm and

- Packer margins seem sufficient to give packers incentive to kill hogs.

Best wishes,

dhm