12/22/17 was up +#0.31 and the model projects that the component for Friday's kill will change in the range -0.25 to +0.05. Packers may have an inventory of cheaper hogs purchased sufficient to keep some downward pressure on the component for a few days. The strong fall downtrend does seem to have come to an end, though.

The GGGs are now trading premium to the component by +8.22. That is quite a premium and sets the stage for some volatility as we move into the New Year. For the index to gain that much between now and cash settlement is not unusual so hang on for a fun ride into the New Year.

Best wishes,

dhm

PS: Ka!! Ching!! Just made a trip to the bank with profits from a long M/N spread I just sold.