2/27/18 was down -0.57 and the model projects that the component on yesterday's kill will drop between -0.40 and -0.70. Yesterday the component dropped -0.46 to 68.56. The JJJs settled premium to the component by +1.39. I guess Traders are thinking the kill will slack-off and packers will be bidding a bit higher by the time the JJJs go to cash settlement. That's usually the way it works this time of the year.
With their lower bids, packers were still able to purchase 122.6% of the moving average daily purchases of index hogs and 113.2% of total hogs. The kill this week is coming in a bit higher than expected and bellies tumbled yesterday by -7.72. Producers didn't need that.
Still flat the JJJs. Will be looking for a scalping set-up today while I wait for the calendar spreads to do something.