for what reason I know not. The data received so far would seem to suggest that the uptrend is still alive and doing well. Packers were able to move the product at higher prices yesterday and they seemed to be willing to pass along some of the gains to the producers. The kill so far this week is weak so there is a good chance packers were looking for hogs yesterday afternoon. If that is the case, there is a good chance the final Purchase Index posted another leg-up.

The MMMs settled premium to the component by 9.99. The model calculates that the component will need to gain an average of 0.265 per day to close the "Gap". On average over the past seven-years the component has gained an average of +0.37 per day from this date until the MMMs go to cash settlement. In 2010 the component actually lost -4.94 from this date until cash settlement. The fundamentals do not seem to be headed in that direction this year. Most of the bullish news seems to be coming out of China where the ASF problem seems to get worse day-after-day.

Best wishes,

Doc