1/20/17 was up +$0.28 and the model projects that the component on Friday's kill will be up between +0.15 and +0.45. Packers are still bidding higher and they seem to be moving the pork at a price that gives them an adequate margin. With their higher bids on Friday they bought in the hogs. They purchased 135.3% of the moving average daily purchases.

On Friday the GGGs settled discount to the component by -1.73. That "Gap" has now widened to -2.21 and will widen even further when the morning reports come out if the model is telling us the truth.

The fundamentals seem to be pointing to the index working higher with packers bidding higher and keeping their hogs to heavier weight and cutout staying firm so I have been long. But there was selling pressure on the futures Friday and it is continuing today putting me on the wrong side of the market. My stops are just about to click in so I may be flat the GGGs this morning.

Best wishes,

dhm