6/5/19 was down -0.27 to 80.42. It appears the MMMs will settle discount to the component by -0.99. Today was quite an active day for the calendar spread with quite a few coming and going on and off my boat. I am still short the MMMs and long most 2020 futures.

The 6-day moving average carcass weight eased to 215.51#. That is +4.30# yr/yr. Index hogs were a bit heavier at 215.55#. Index hogs are now heavier than the 6-day moving average. Packer hogs were a bit lighter and are only +1.11# heavier than non-packer hogs. The fact that packer hogs have declined significantly in weight suggest that packers may have been liquidating some of their market hogs.

Best wishes,

Doc