5/31/17 was up +$0.64 and the model projects that the component on yesterday's kill will be up between +0.20 and +0.50. The post Memorial Day slump did not amount to much this year. With their higher bids, packers were able to purchase 99.7% of the moving average daily purchases of Index hogs. It continues to appear that index hogs are in fairly short supply. The declining carcass weight and the fact that hogs are lighter this year by a couple of of pounds makes me think that hogs have been pulled forward. If that turns out to be the case and demand holds, summer hog prices might be friendly for producers.

The MMMs settled premium to the component by 5.38. The model calculates that it will take and average daily gain in the component of 0.51 to close that "Gap". That is quite a tall order so I took profits on some MMMs this morning and may cash in more.

Best wishes,

dhm