5/18/18 was up 0.48 to 68.57. That change is very much in line with what the model projected. The MMMs are now trading premium to the component by +5.35 but it has been all over the place today. My bias continues to be that the Index will not move up enough to close the "Gap" and the MMMs will end up down a bit. When the MMMs surged at the opening I sold a handful and bought them back on way down with my last buy at 73.025. I'm still short a few MMMs but not as many as I was when the day started.

The 6-day moving average carcass weight was steady at 212.70#. That is +2.82# year/year. Packer hogs are +3.52# heavier than the non-packer hogs and index hogs are lighter at 212.70# and that was also steady.

Packer hogs made up 32.96% of the kill mix for the last 200-days and 33.86% for the last six-days. Packers seem to have loaded up on market ready hogs and are not going to be caught short-bought like they were is 2012. Packers may have enough hogs to be able to meet their kill needs without having to aggressively bid for hogs. Both packer and non-pacler hogs were about 1/5# lighter in today's report.

The "Gap" closing waltz continues and so far I am keeping "Miss Short" as my partner. It appears that when the NNN "Gap" closing waltz begins I want her as my partner then also.

Best wishes,

dhm