4/27/18 was down -0.04 and the model projects that the component on Friday's kill will be up between +0.30 and +0.60. Packers still have an inventory of more expensive hogs that will likely be suppportive to the index for another day or so. Packers purchased 101.7% of the moving average daily purchases of total hogs and 108.0% on index hogs. The KKKs are trading premium to the component by 3.64. The model calculates that it will take an average daily gain of 0.32 to close the "Gap". It may not happen so I am now short the KKKs once more and will sell more on a bounce.

Best wishes,

dhm