6/6/17 was UP +0.80 to 79.20. The "Gap" has now closed to +2.63 with the MMMs trading premium to the component by 2.63. There are now six more days of data to come in to get us to the cash settlement index. The model projects that it will take an average daily gain of 0.44 to close the "Gap". With a holiday just around the corner, I think the Index will move to close the "Gap".

Both packer and non-packer hogs were lighter this morning by about 1/4#. That is -2.46# year/year. Packer hogs are now -0.87# lighter than non-packer hogs. I continue to believe hogs have been pulled forward and it especially packers who are pulling their hogs forward. Index hogs were also lighter this morning at 210.56#.

We are just a few weeks away from the next H&P report. The data continues to suggest to me that there will be a downward revision to the 3/1/17 inventory of market hogs, especially in the lighter weight categories.

Still riding a herd of MMM pigs and have scalped in an out of a few today. Just piled a couple of long Q/V calendar spreads on my boat. Now to see if I can deliver them across the pond. I have been having a good bit of success with the long Q/V spreads this year.

Best wishes,

dhm