3/1/18 was down -0.23 and the model projects that the component on yesterday's kill will drift down between -0.25 and -0.55. Cutouts are not giving packers the money to put much onto their bids. So we keep drifting down, down, down.
Packers made a good purchase yesterday getting 115.4% of the moving average daily purchases of total hogs and 122.2% on the index hogs. Packers were bidding a bit higher on the negotiated hogs so that may be a sign that the supply of hogs is tightening up a bit.
The JJJs are now trading discount to the component by -0.85. If the component on yesterday's kill drops as expected, that "Gap" will close a bit.