5/30/18 was up 0.03 to 69.65. The MMMs are now trading premium to the component by 6.68. On average over the past 11-years the Index gained 1.53 from this date to cash settlement. The most it gained was i 2012 when it gained 10.20. The most it lost was in 2008 with a drop of -4.82. It was down in 6 of the 11 years and up in five. Historicals don't determine prices! Prices are a function of the supply/demand factors here and now.

The six-day moving average carcasss weight was steady at 21.13#. That is +1.60# yr/yr. Packer hogs were heavier than non-packer hogs by +3.67#. For the day packer hogs were +1/4# and non-packer hogs were -1/2# lighter. On a 200-day moving average packer hogs made up 32.99% of the kill but for the last six-days packer hogs contributed 34.42% of the kill. Packers may be getting slightly more current in their shipments but it appears they have expanded their production capability.

Being short the MMMs is more fun today than it was yesterday. I had a little trouble trying to reconcile yesterday's jump by the MMMs with the numbers we are seeing but in the hog market one can always expect the unexpected! Thus saith Long Bear.

Best wishes,

dhm