1/19/18 was dpwn +$0.10 and the model projects that the component on Friday's kill will be up between +0.10 and +0.40. Packers have some more expensive hogs purchased and that may be supportive to the index for another day or so. Even with a slightly lower bid, packers purchased 143.0% of the moving average daily purchases. This may be the first hint that we have been in a weather market when producers were not wanting to load hogs in the cold. Packers also made a solid purchase of index hogs at 121.5% of the moving average daily purchases.

The GGGs settled discount to the component by -1.52. Traders are expecting a little weakness in the Index over the next couple of weeks. The cutouts held firm Friday and that may be enough to keep the GGGs from falling out of bed today.

Still a little long the GGGs and nearly loaded to the max with calendar spreads. I would like to see some go away today but will take on a few more if the price is right.

Best wishes,

dhm