1/17/18 was up a mere +0.05 and the model projects that the component on yesterday's kill will move up between +0.40 and +0.60. Packers have a fair sized inventory of more expensive hogs purchased and this will probably be a bit supportive of the Index for another day or so. The GGGs are now trading discount to the component by -0.48. That's not much but it may be setting the stage for the GGGs to move up a bit if packers keep the up-trend in the price of hogs going.
Packers only purchased 72.8% of the moving average daily purchases of total hogs but they rounded up 124.8% of the moving average daily purchases of Index hogs. What is going on here? Why the large purchase of index hogs compared to total hogs?
It continues to appear that there is a mild uptrend going on so I am still long the GGGs and decided to HODL (Hold On for Dear Life) the two additional GGGs I bought yesterday.