1/24/17 was UP +$0.36 and the model projects that the component on yesterday's kill will jump between +0.15 and +0.45. Primal cuts were unusually strong suggesting demand is firm. Perhaps it is export demand driving cutouts.

The purchases that packers made with their firm bids was a bit soft at 84.0% of the moving average daily purchases. That may mean that they will be in the market buying hogs with a bit more aggressiveness today.

The GGGs settled discount to the component yesterday by -2.32. The up-trend in the Index may be strong enough to begin pushing the GGGs higher. Have some long GGGs here.

Best wishes,

dhm