12/20/16 was down -$0.36 and the model projects that the component on yesterday's kill will be between up +0.10 and down -0.20. I see I forgot to post the change in the index for Monday. It was down -0.12 to 58.06. Last night the GGGs settled premium to the component by +5.94.

Even though packers were bidding mildly lower yesterday they made a fair purchase at 82.3% of the moving average daily purchases. Carcass weights are running more than two pounds lighter than last year. It appears that producers are keeping very current with their shipments. Packers are continuing to ship heavier hogs. I think this indicates they are selling the product well and have a good appetite for hogs at this price level. That is consistent with the firmness we saw in cutouts the past couple of days.

I did in fact get long a couple of GGGs yesterday. Now the question is, "Do I really want them?"

Calendar spreads have been moving well so far this month. I was able to cover a K/M spread I have been worrying-over since mid-June and on Monday I wiped the slate clean with the G/J spreads and then yesterday I was able to reload my boat with three and have orders working to take on a few more.

Best wishes,

dhm