1/27/17 was UP $0.32 AND the model projects that the component on Friday's kill will scoot up between +0.10 and +0.40. The up-trend is still in place. Packers seemed to be chasing the negotiated hogs on Friday and that may be a bullish sign. With their higher bids packers made a solid purchase at 119.4% however last Friday they purchased 135.3% of the moving average daily purchases so considering the day of the week, they might not have done all that great in pulling in the hogs.

Cutouts are holding up well and that is constructive.

Packer hogs continue to come to market heavy and that may be telling us that packers are trying to produce more pork and the only way they can do it right now is to finish hogs heavier.

Still long the GGG pigs.

Best wishes,

dhm