5/25/18 was unchanged. Actually there was a touch of weakness but it was less than -0.01 so the computer showed it as unchanged. The model projects that the component on Friday's kill will be up between +0.15 and +0.45 being driven by the more expensive hogs that packers have purchased and they are waiting in line to be processes. The MMMs settled premium to the component by +4.69. The model calculates that it will take an average daily compoment gain of +0.35 to close that "gap" without some help by the MMMs dipping a little. On average over the past 11-years the index has gained 0.96 from this date until the MMMs expire. The most it gained was in 2012 when it gained 9.43. The most it lost was -6.00 in 2010. It gained in five years and lost in six. The MMMs have already met my objective of a nice dip and I'm now in a state of wonderment about where we go from here. I still have a few short MMMs.

Packers purchased 109.3% of the moving average daily purchases of total hogs and 106.8% on the index hogs.

Ka!! Ching!! Just took profits on a long Q/V spread that I had been ferrying around on my boat since 5/23/18. I like fast turn-arounds.

Best wishes,

dhm