5/19/17 was down $0.06 and the model projects that the component on Friday's kill will be up between +0.30 and +0.60. Packers still have an inventor of more expensive hogs that will keep the index firm for another day or two even if the Index turns down. The MMMs are trading premium to the component by +3.67.

Historically the index tends to fall in Mid-May then rebounds in early June. This year demand may be strong enough to have any down move fairly muted and even if it does fall, a recover could occur before MMMs get to cash settlement.

I'm a little long the MMMs added one on the dip this morning. Will scalp out of some and reload if we get back to the 78.75 level.

Best wishes,

dhm