6/9/17 was up 0.37 to 80.79. The MMMs are now trading premium to the component by by 1.24. The model projects that the component will need to gain 0.49 from now until cash settlement to close that "Gap". That may be just about the trajectory that we are flying with. I will stay long the MMMs and try to scalp a little. Haven't done very well with that so far today.

The 6-day moving average carcass weight dipped to 210.00. That is -2.87# year over year. That tells me that Hogs have been pulled forward quite a bit. Packer hogs are now -1.69# under non-packer hogs. Packers have really been hurrying their hogs to market during this holiday demand surge. I'm suspecting they had some pork sales commitments they had to honor but they may have been just cashing in while prices were good.

I came into the day long a few M/N spreads and was concerned that they might fall out of bed. But Lo and Behold! My profit targets were all met and my sell points were hit so now I am short the M/N. Ka!! Ching!!! Just hurried to the bank with profits from one of the short M/N spreads. It isn't often that the M/Ns are as wild as they have been today. I just don't know what got into the NNNs to tank so badly. I tend to only deal in the front month as an outright. I rely on my model as a trading tool and it is only effective on the front month.

My boat has been riding quite high in the water. This morning I was able to pile on four long Q/V spreads that replaced some of the other spreads that hit profit target today. These calendar spread have really been active lately.

Best wishes,

dhm