5/9/19 was up +0.36 and the model projects the component on yesterday's kill will change in the range of +0.15 to -0.15. The MMMs are now trading premium to the component by +6.43.

With the firm bids, packers purchased 85.2% of the moving average daily purchases of total hogs and 88.8% on the index hogs. Some markets showed a lot of strength in the negotiated hogs.

Over the years I have noticed that packers have a tendency to be chasing hogs this time of the year as retailers are filling their cases for the Memorial Day grilling day. This often results in the KKKs showing a little strength as they go to cash settlement. At the same time, the K/M spread will show a mild tendency to bounce a little. The rally the K/M spread made the end of April enabled me to sell all the longs I had accumulated. The K/M spread has been very good to me this year but I am now flat. This morning has been a fairly busy morning hustling calendar spreads on and off my boat. When the MMMs dipped I bought a scalper at 88.825. Not to see if I can clear it off the deck or have to dump it into the pond.

Best wishes,

Doc