5/31/19 was down -0.70 and the model projects the component on Friday's kill will drop between -0.40 to -0.70. The hog market is still in the post-Memorial Day doldrums. Looking at the strength of the MMMs and the NNNs, traders seem to be thinking it is about over and will shortly see the Index begin to climb.

With their lower bids packers purchases plenty of hogs - 144.1% of the daily moving average of total hogs and 139.9% on the index hogs. Producers seem to have been anxious sellers on Friday. Traders have moved the MMMs up and they are now premium to the component by +0.49. Not really that much but was not expecting any strength in the MMMs considering the fundamentals.

Best wishes,

Doc