1/19/17 was up $0.12 and the model projects that the component on yesterday's kill will move up between +0.25 and 0.55. Packers still have an inventory of more expensive hogs that should keep the component firm for today and maybe tomorrow even if their bids retrace a little. The GGGs settled discount to the component yesterday by -1.56. Considering the way packers are bidding for hogs, I don't think the GGGs should be discount to the component.

Packers made a fairly good purchase at 91.8% of their moving average daily purchases but they had to bid a bit higher to get the hogs. Non-packer hogs were lighter weight yesterday. I think this means they are very current in their shipments.

I'm still long the GGGs and will buy more on a dip.

Best wishes,

dhm