10-21-14 was down -1.99 and the model projects that the CME Index component on the 10/21/14 kill will collapse by something in the range of -1.15 to -1.45. Packers seem to be intent on getting their cost of product down and, considering the way primal cuts are falling, they have to be.

Even though packers were cutting their bid prices sharply, they were able to make a decent purchase yesterday at 95.3% of the moving average daily purchases. I near as I can tell, producers are quite willing sellers at this point in time.

I know if I were a producer, I will load my pickup and head to market.

The market gave us a rather Bizarre settle on the K/M spreads. It settled at -3.65. I had multiple orders working to buy starting at 3.35 and got nothing. It often works that way with the K/M spreads. Sometime between now and early May I expect the spread to move up to the -2.00 level or higher. They take a lot of patience.

Best wishes,

dhm