5/21/19 was down -0.03 and the model projects that the component on yesterday's kill will change in the range of -0.15 to +0.15. The MMMs settled premium to the component by +5.77. The model calculates that the component need to gain +0.33 per day to close the "Gap". During the last 6-days the component has gained an average of +0.19 per day. Not quite the trajectory needed to close the "Gap". Cut outs gained +0.54 yesterday.

Packers purchased 106.3% of the moving average daily purchases of total hogs and 102.4% on the index hogs.

I have decided that being short the MMMs may be preferable to being long so I have piled four shorts on my boat to go with the calendar spreads and being long the summer 2020 futures.

Best wishes,

Doc