6/5/17 was UP +0.98 and the model projects that the component will be up between +0.65 and +0.95. This is the season when hog supplies tighten up because of the biology of hog reproduction. The MMMs are now trading premium to the component by 6.27. The model calculates that the component will need to climb by +0.833 per day to close that "Gap". It appears that we may get a boost of that much today. On 6/1/18 we had a +1.23 jump.

With their higher bids packers only purchased 80.8% of the moving average of daily purchases on total hogs and 86.5% on Index hogs. Market hog Supply IS falling.

Still short the MMMs and my supply of Tums is dwindling!

Best wishes,

dhm