3/22/17 was down -$0.30 and the model projects that the CME Lean Hog Index component of yesterday's kill will drop between -0.15 to -0.45. Packers are lowering their bids a bit day-after-day. The rate they are lowering them is not fast enough to close the "Gap" . But they might accelerate the speed at which they drop their bids. The weakness in the cutouts yesterday is a good reason why they might speed up this down hill move.

With their lower bids, they only purchased 86.4% of the moving average daily purchases. Maybe they slowed down their purchases to make room to kill more of their own hogs.

The cold storage report yesterday showed the bellies in stock is still running way below one-year ago. This may support the cutouts a little today.

I'm flat the JJJs and have joined ITZ IN the confused crowd.

Best wishes,

dhm