1/18/17 was up +$0.13 and the model projects that the Component on yesterday's kill will be up between +0.30 and +0.60. Packers keep sweetening their bids and this gradually keep the index moving higher. Yesterday the GGGs settled discount to the component -1.15. Perhaps this was a knee-jerk reaction to the cutouts being a bit lower. It looks to me like packers' margins are still in good shape. Maybe the market made a mistake in taking the GGGs down that much yesterday.

Still long the GGGs but keep scalping in and out putting a little money in the bank on each scalp. The calendar spreads keep moving on and off my boat at an acceptable rate.

Best wishes,

dhm