2/9/17 was UP (AS USUAL) by +$0.66 and the model projects that component on yesterday's kill will creep up between +0.30 and +0.60. Packers have quite an inventory of progressively more and more expensive hogs purchased. Usually this means that the component will continue to rise for another day or two. That puts us very close to cash settlement. The GGGs settled premium to the component by +1.01 yesterday. Nearly half of that will probably go away when we get the 11:00 report. There is a fairly strong likelihood that the surging index will pump the index up enough to push the GGGs a bit higher.

Yesterday packers threw their wallets on the table and said, "Take what you want, just send us the hogs." More was take out of packers' wallets but they only sent 82.8% of the moving average daily purchases. That may set the stage for packers to bid higher again today. All this demand, all of he Old Mother Hubbards of the world must be out trying to get a bone for their poor doggies.

Still long the GGGs here and have orders working to buy the Q/V spread.

Best wishes,

dhm