2/9/16 was UP +$0.44 and the model projects that the component on the 2/9/16 kill will be up between +0.20 and +0.50. Packers were only able to make a fair purchase yesterday at 85.8% of the moving average daily purchases even though the were bidding a little higher. The kill yesterday was a little soft and it appears that foul weather made it difficult for producer to ship hogs. This may back hogs up a little and set the stage for packers to lower their bids a little when the weather breaks and the chances are that will be after the GGGs go to cash settlement so I am staying long the GGGs.

Maybe is should be getting short the JJJs or maybe sell the J/K spread.

I like trading the K/M spread from the long side and the J/K spread from the short side.

Best wishes,

dhm