2/1/17 was UP +$0.45 and the model projects that the CME Component on yesterday's kill will rise between +0.10 and +0.40 keeping the up-trend in place. With their higher bids packers only purchased 84.7% of the moving average daily purchases. We may see more packer hogs run through the plants this week if the purchases continue to be on the weak side.

Traders are now beginning to see that we have a strong up-trend going and have bid the GGGs up until they are now premium to the component by 0.76. I don't know, but I suppose if the cutouts stay firm that the rising component could push the GGGs a bit higher. I cashed in a couple of long GGGs this morning but will replace them if we get a fair sized dip. Otherwise I will hang onto what I have left to see if there is a little more to this bull run.

I think we have a Goldman Roll starting next week. Sometimes that gives me some spread action. I am well prepared with plenty of calendar spreads on deck.

Best wishes,

dhm