2/23/17 was down -$0.54 and the model projects that the component on yesterday's kill will change in the range of +0.05 to -0.25. Packers may have some hogs to kill that are more expensive than the ones they bought yesterday. This may support the component a little.

Packers made only a fair purchase yesterday at 85.1% of the moving average daily purchases. The "Gap" settled at -11.07 yesterday with the JJJs being discounted to the component. I can't ignore a "Gap" that large so I am not very bearish - actually I am a bit neutral. I am short four futures and short four 65 and 66 puts and a bunch of calendar spreads.

Best wishes,

dhm.