6/8/17 was up $0.78 and the model projects that the component on yesterday's kill will be up between +0.40 and +0.70. The "Gap" settled last night at +2.40 and the model shows that the component will need to gain 0.50 per day to close that "Gap". That appears to be just about the path we are on so the MMMs may be appropriately price except packers were only able to purchase 83.5% of the moving average daily purchases of Index hogs. If there is a holiday surge in demand, there may be a battle to see who gets to kill the hogs. The could push the MMMs up another point, I suppose.

With cutouts being rather strong yesterday and carcass weights continuing to erode away, the downside risk of being long the MMMs appears to be fairly minimal. I have been selling a few MMMs on rallies and reloading on a dips. This morning I'm looking for a dip to reload and it might not come.

Best wishes,

dhm