1/25/17 was up $0.04 and the model projects that the component on yesterday's kill will be up between +0.05 and +0.35. The up-trend seems to be intact but the rate of advance is slowing. Yesterday we had a big "Gap" closing, emotional move. This time it was to the up-side because the GGGs had drifted a little too low causing the excessive "Gap" and it got fixed in a hurry.

Packers purchased 86.6% of the moving average daily purchases yesterday with bids that nearly unchanged. Demand is remaining strong as measured by the cutouts especially strong yesterday was the bellies and hams. The cold storage report yesterday showed low belly stocks and was NOT bearish for pork.

I'm still long the GGGs but did bank some of them as well as a bunch of calendar spreads.

Best wishes,

dhm