6/7/17 was up +0.43 to 79.63. The surge in the MMMs this morning has opened the "Gap" to 2.45. That may be a tiny bit too high so I took profits on three of the long MMMs. The model now shows that it takes an average daily gain of +0.56 in the component to close the "Gap". If they drift back down, I will buy them back.

The six-day moving average carcass weight dropped to 210.11# this morning. That is -3.04# year/year, Packer hogs are now -1.06# lighter than non-packer hogs. Packers have really been raiding their barns to meet their kill needs. If their is a holiday demand surge, packers will have to go to the countryside to find hogs because they have pulled their hogs forward by no SMALL degree. Index hogs were also lighter at 210.28#.

Calendar spreads have been active again this morning.

Best wishes,

dhm