5/24/17 was up 0.08 to 76.28. The weakness of the MMMs has closed the "Gap" to 3.57 with the MMMs being premium to the component. The model projects that the component will need to make and average move up of 0.26 per day to close that "Gap" at cash settlement. My bias is that will most likely happen but a dip in the Index often happens in mid-May and that could pull the MMMs down a notch before the end of the month. I will stay long the MMMs if the ride doesn't get too bumpy.

The six-day moving average carcass weight was steady at 210.49#. That is -1.76# yr/yr. Packer hogs are lighter than non-packer hogs by -1.10#. Packers are continuing to pull their hogs into the slaughter mix at a faster clip than usual. Index hogs were steady at 210.70#.

Best wishes,

dhm