6/9/17 was up +$0.39 and the model projects that the component on Friday's kill will be up between +0.35 and +0.65. The MMMs settled premium to the component by 2.06 and the model projects that it will take an average daily gain of 0.55 to close the "Gap". It just happen that the component has gained an average of +0.55 for the past five days. It appears that the MMMs are appropriately priced unless hot weather slows the flow of hogs down a little.

Packers made a strong purchase of hogs Friday at 122.9% of the moving average daily purchases.

But -

When you look at just the Index hogs, they only purchased 95.7% of the moving average daily purchases of index hogs. I just might be that index hogs are in shorter supply than total. This could cause packers to sweeten their bids for Index hogs. With favorable margins, packers will want to keep the chains running strong. There is probably not of "UP" potential for the MMMs but there is probably not a lot of risk being long so I will stay the course and keep long.

I guess it is now time for me to begin focusing on the NNNs.

Best wishes,

dhm