3/26/18 was down -0.91 and the model projects that the component on yesterday's will fall between -0.65 and -0.95. It appears to me that we are still looking for the "Trough" for this hog cycle. With their lower bids yesterday packers purchased 161.5% of the moving average daily purchases. This may be an indication that producers are becoming very willing sellers. The purchase of index hogs was also strong at 116.2% of the moving average daily purchases.
The JJJs are trading discount to the component by -3.11. This "Gap" will most likely close a little when the morning report comes out and the component suffers it morning drop.
I'm flat the JJJs but I am short a couple of MMMs and have a boat load of calendar spreads. I have been trying to get short the June cattle/hog spread but it is terribly wild and I am a bit afraid of it.