2/16/17 was up +$0.46 and the model projects that the component on yesterday's kill will continue the upward march by adding between +0.40 and +0.70. Yesterday the JJJs settled discount to the component by -6.49. That's quite a "Gap" in view of the strong up-trend we are on. I look at the dip in the cutouts yesterday - especially the bellies - and I ask myself, "Is this the first warning sign that a spring crash is just around the corner?"

Packers made only a fair purchase yesterday at 82.7% of the moving average daily purchases. That strikes me as setting the stage for firm packer bids again today.

I have more than casual interest in whether or not the slide in the JJJs continue this morning because I'm long some.

Best wishes,

dhm