5/30/18 was up +0.39 and the model projects that the component on yesterday's kill will be up between +0.20 and +0.50. Packers purchased 121.8% of the moving average daily purchases of total hogs and 124.2% on the index hogs. They brought in the hogs with higher bids.

The MMMs settled premium to the component by 7.71. The component needs to gain an average of 0.71 per day to close that "Gap". Since the MMMs became front month the index has gained 0.42 per day. With cutouts at 76.05 packers are going to need to scare up some demand to keep bidding higher it seems to me.

Still short the MMMs and short was not smart yesterday.

Best wishes,

dhm