6/8/18 was up 1.22 and the model projects that the component on Friday's kill will jump between +0.95 and +1.25. The supply of market ready hogs is rapidly dwindling and packers are scrambling to see who gets to kill the hogs. The MMMs are now trading premium to the component by 5.31.

And I am flat the MMMs and hopefully a bit wiser when it comes to trading the late spring/early summer rally.

It is impossible to know what is going to happen in the future. I remain convinced that the available supply/demand information available in the hog market is far superior to that available in any other market and if there is a chance to trade fundamentally, the hog market has better potential than any other market.

I still have plenty of spread trades on my boat but I don't approach them fundamentally rather from the standpoint that they take a random walk.

Best wishes,

dhm