2/17/17 was up +$0.09 and the model projects that the component on Friday's kill will scoot up between +0.20 and +0.50. Packers made a very large purchase at 137.7% of the moving average daily purchases. Since the Purchase Index was not up much, I think that producers were motivated sellers to have that many purchased.

The JJJs settled Friday discounted to the component by -6.27. That "Gap" may be wide enough to be a bit supportive of the JJJs because:

1. Cut outs held firm Friday showing continued good demand.

2. Packers are finishing their hogs quite a bit heavier than non-packers suggesting they are wanting more pork.

3. Historically there tends to be a gentle decline in the weekly kill rate from now until Memorial Day week.

I'm still mildly long the JJJs and spread all over the place.

Best wishes,

dhm