6/7/17 was UP +0.67 and the model projects that the component on yesterday's kill will be UP between +0.30 and +0.60. The MMMs settled premium to the component and the model showed that it will take an average daily gain of +0.44 in the component to close that "Gap". The problem is that the MMMs have taken flight this morning so it will now take a bit more to close the "Gap".

With their higher bids packers were able to purchase 94.6% of the moving average daily purchases of Index hogs. My bias continues to be that the holiday coming up will create enough of a demad surge to close the "Gap" and maybe a bit more so I am holding long the MMMs.

Best wishes,

djm