12/18/18 was down -0.05 and the model projects the component on yesterday's kill will change in the range of -0.10 to -0.40. Historically there is quite a strong tendency for the component to show weakness until after New Years DAy. Retailers now have their case loaded for the holidays yet pork keeps piling up packers will often back their bids off a little until the supply of hogs begins to tighten a little. That is hardly justification for the summer futures to dip so I have added a few and will buy more if there is more weakness. The GGGs settled premium to the component by +12.86. It will take more than an ITZ ten-pointer to close that and historically we often get that much or more so I am wanting to get long the GGGs but not quite yet. Yesterday may have been a "Buy Day" and I missed it. Just bought a J/K spread at -6.00.

Packers purchased 80.22% of the moving daily average of total hogs and 87.5% on the Index hogs.

Best wishes,

Doc