6/1/17 was up 0.60 to 77.64. The MMMs are trading premium to the component b 3.81. The model projects that the component must gain an average of 0.47/day to close the "Gap" by the time we go to cash settlement.

The 6-day moving average carcass weight moved up to 210.90#. That's -1.98# year over year. Perhaps the no-kill holiday enabled hogs to tack on a little extra weight. Packer hogs were about 1/2# heavier but they are still -0.45# under the non-packer hogs. It appears to me that packers moved a goodly number of their hogs forward to meet their Memorial Day kill needs. If their inventory is mildly depleted, they will need to rely more on non-packer hogs to meet the Independence Day demand surge.

No matter how I look at the data, I cannot come up with a bearish scenario. I just might hang onto some MMMs to go to cash settlement.

Best wishes,

dhm