The final Purchase Index for - - -

1/18/18 was up +0.14 and the model projects that the component on yesterday's kill will be up between +0.40 and +0.70. With their higher bids, packers purchased 116.8% of the moving average daily purchases of index hogs and 111.9% on total hogs. Producers stepped up and sold hogs yesterday.

The GGGs settled discount to the component by -0.69 yesterday. The price of hogs seems to be trending up mildly. With cutouts holding up fairly well, my thoughts are that the rising component my push the GGGs up a point or two - - - unless the weather is causing producers to be reluctant to load-out hogs in which case we could see a mild rush of hogs to market when the weather breaks.

I'm only mildly long the GGGs and will ride out the rush of hogs if they come.

Best wishes,