component on yesterday's kill will be late. We know it is going to be down; the question is by how much. In view of the fact that the decline in the component yesterday was less than projected, the drop today may be larger than expected because packers may have extra cheaper hogs to process.
The M/N spread popped enough this morning to enable me to take profits on a long M/N spread. Now I have an order working to buy again at -0.725. Considering how strong the downtrend in the Index is, I sold four VVVs near the high of the day and will not be in a hurry to cover them.
Best wishes,
Doc