5/31/17 was up +0.50 to 77.04. The MMMs are trading premium to the component by 4.18. The model projects that the component will need to rise by 0.41 per day to close that "Gap". With the Independence Day demand surge coming up, it just might happen so I am going to keep a few MMMs and will try to scalp in and out as traders juggle prices around.

. The six-day moving average carcass weight moved up to 210.54# this morning. That's -2.12# year / year. Perhaps the no-kill on Memorial Day gave hogs a chance to tack on a little weight. It was especially packer hogs that got heavier. Even so, they are -0.65# under non-packer hogs. Index hogs are heavier at 210.72#. With hogs being lighter than one year ago and the carcass weights having drifted lower, my read is that hogs have been pulled forward to meet the Memorial DAy demand.

Best wishes,

dhm