3/28/17 was down -$0.80 and the model projects that the component on yesterday's kill will drop between -0.40 and -0.70. It looks like packers are dropping their bids a bit more rapidly now. I suspect the decline in the cutouts is a big factor. The JJJs are now trading discount to the component by -4.47. I suspect when the 201 report comes out this morning, the model will project and even lower cash settlement price for the JJJs.

Packers purchased 90.9% of the moving average daily purchases yesterday. I suspect there are a lot of nervous producers with hogs ready for market and they are wanting to ship them before the market drop further.

I'm glad I sold some calls yesterday.

Best wishes,

dhm