for 12/26/18 was down -0.08 and the model projects the component on yesterday's kill will drop between -0.10 and -0.40. Yesterday the component was down -0.21 at 53.24. The GGGs settled premium to the component by +7.14. That is quite a "Gap". On average the component moves up something like two and a half points but in 2017 it jumped 17.17 from this date until cash settlement. In 2015 it dropped -19.58 from this date until cash settlement. This can be a wild time of the year.

Yesterday packers purchased 86.6% of the moving average daily purchases of total hogs and 87.8% on the index hogs.

This morning when the MMMs spiked I sold one at 82.425 and am now looking for a dip to replace it but mostly I am HODLing the summer futures. The spreads on my boat are gathering a bunch of dust but I did sell two G/Js this morning.

Best wishes,

Doc