12/21/16 was up +$0.30 and the model projects that the component on yesterday's kill will be up between +0.10 and +0.40. The firmness in the cutouts suggests that Packers are moving the product quite well.

With the 6-day moving average carcass weight trailing last year by -2.15#, I think the talk of a December glut in kill numbers spooked producers and they started pulling hogs forward at a rapid clip. This may have depressed prices causing demand to move up at the lower prices. Packers may have sensed what was happening and chose to go slow shipping their hogs because they would need more pork a bit later.

I'm long the GGGs and will be willing to scalp from the long side if there is a dip.

Best wishes,

dhm