6/12/17 was up +0.80 to 81.58. The MMMs are now trading premium to the component by +0.87. It will take a gain of 0.80 for the next two days to close that "Gap". Chances are quite good that we will get it.

The six-day moving average carcass weight dropped to 207.89#. That's -2.07# yr/yr. Perhaps hot weather is now taking its toll on carcass weights but there has been significant pulling forward of hogs for quite some time. At least that is what the declining carcass weights are telling me. Index hogs are quite a bit lighter at 207.89#. Both packer and non-packer hogs were about 1/2# lighter this morning and packer hogs are -1.76# lighter than non-packer hogs. This seems to be telling us that supply is tight in front of a potential holiday demand surge.

Calendar spreads continue to be active. I have piled a bunch of long Q/V spreads on my boat. One hit my profit target this morning and I will replace it but I will let them drop quite a bit before I do.

Best wishes,

dhm