4/6/18 was down -0.71to 53.72. The JJJs are trading discount to the component by -0.72. The surge in the JJJs has closed a lot of "Gap" this morning.

The six-day moving average carcass weight was steady with just a touch of strength at 215.81#. That is +2.26# year over year. Packer hogs were a bit lighter while non-packer hogs were about +1/2#. Index hogs were a bit lighter at 214.73#. The percentage of packer hogs in the kill mix dipped to 31.70% in this mornings report. I keep watching the data looking for a clue relative to what to expect the kill rate to look like over the next several weeks. Oft times a higher year over year weight will indicate that producers are getting behind in their shipments. Since it is packer hogs that are leading the charge toward heavier weights, it leaves the door open to the possibility that packers are wanting to process heavier and heavier hogs. The weak kill last week surely did not suggest that producers were getting behind in their shipments.

I lost my head this morning and sold the cattle/hog spread at 31.20. The market co-operated and quickly gave me my profit target. As it turned out, I didn't ask the market for nearly
enough but I am happy with getting a point plus some for commissions.

Some of the calendar spreads treated me well today and some dished me out of dose of "Humble Pie!"

Best wishes,

dhm