3/30/ 17 was down -$0.70 and the model projects that the component on yesterday's kill will shed between -0.45 and -0.70. When there was a lot of weakness in the component yesterday, I thought that the packers were about to slow down the rate at which they were lowering their bids. That may not be the case afterall. With cutouts being weak and the kill rate high, they may continue to be aggressive in cutting their bids. I'm suspecting the projected cash settlement for the JJJs will fall when we get the 201 report this morning. The JJJs settled discount to the component by 2.88 yesterday. The falling index may push the JJJs even lower.

Packers purchased 90.1% of the moving average daily purchases with their lower bids yesterday. That is within the normal range for a Thursday.

I rode three short JJJ pigs over night and will sell more if we get a bit of a rally this morning. Also sold a couple of JJJ 68 calls yesterday.

Best wishes,

dhm