5/10/18 was up +0.82 and the model projects that the component on yesterday's kill will be up between +0.40 and +0.70. Packers still have some cheaper hogs purchased and that will temper the gains on the kill for yesterday and maybe today. The KKKs are trading premium to the component by 1.79 and the model projects that it takes and average daily gain in the component of +0.69 to close that "Gap". It does not appear that there is much reason to be long the KKKs and possibly some profit potential for going to cash settlement with some short KKKs of which I have some.

The MMMs are trading premium to the component by a "Grand Canyon-like Gap" of 13.59. It isn't often that we see the index move that much in a period of 22 trading days. But in the hog market you can always expect the un-expected.

Best wishes,

dhm